The average age of people buying house in India is coming down. While cheaper and growing housing finance options are the main reasons for the change, falling property prices have also catalysed the process.
"Few years back, people who came to us to buy houses were in the age group of 45-50 years. Now it has come down to about 30 years," Pradeep Seth, executive-president of Ansal Properties and Industries, said.
Gesco Corporation Ltd senior vice-president RS Sodhi said: "The average age of people buying a house is falling. While it was about 40 years a few years back, now it is moving towards 35 years and less."
Even the housing finance industry is experiencing the change. ICICI Home Finance chief operating officer Rajiv Sabharwal said, "The post tax interest rates have fallen to 7.5 per cent today compared to about 13 per cent three years back."
Increasing housing finance options, falling interest rates, growing salary levels, increase in the number of earning members in a family and greater purchasing power are responsible for the change.
CB Richard Ellis managing director Anshuman Magazine feels the change has become more profound because
With the development of suburbs, the housing options have become lucrative, he added.
"Earlier, people had fewer options in the affordable housing category. Now, the scenario has changed dramatically," he said.
J K Arora, a property developer in Delhi, pointed out that over 95 per cent people coming to him are today buying houses rather than renting them because the rentals in some locations were almost equal to the installments that one has to pay in case of a housing loan.
Housing finance companies and banks are also making a beeline to 'catch them young' by introducing options of a longer loan duration.
While ICICI home finance has launched a 30-year product, the Corporation Bank is wooing investors with a 25-year loan product.
This is a considerable change considering five years back, 15-year loans were pulling 70 per cent of the total loan-customers.
Interestingly, because of all the reasons put together, the proportion of people buying a house has increased from 50 per cent of the total number of people looking for a house, to over 70 per cent, says Sushil Ansal of Properties and Industries.