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Young India raring to build homes, says a survey


Young India raring to build homes, says a survey

Last updated: November 5 2007
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  • Young India raring to build homes, says a survey

    While it may have taken the earlier generation a lifetime to own a brick and mortar place to call home, the age-ownership gap is increasingly narrowing, reveals a study conducted by Assocham.

    The boom in real estate activities may not have brought housing for all as yet, but their average buyer’s age has come down by nearly 20 years. This development, says Assocham, can be attributed to the intensifying desire in youngsters to own dwelling units and save money on high property rentals.

    An analysis carried out by the chamber on ‘emerging age trends for buying dwelling units for self-use’, reveals that from 2000 onwards, the age group for property registration for personal use in majority of cases is ranging between 30 and 38. The study was based on the feedback received from real estate developers like DLF, Prasvnath, Omaxe and Unitech.

    However, 15-20 years ago the housing ownership pattern was between 55 to 58. The factors responsible for the emerging trends include high rentals, non-sustainable lease agreements between property owners and those of tenants, rising income levels as a result of eruption of opportunities and easy availability of finances.

    Assocham president Venugopal N Dhoot said that the pervasive impression is that due to high interest rates, number of aspirants for home loans have declined but the fact remains that the effective interest rate on a loan of Rs 15 lakhs works out to 6.1 per cent upon an interest rate charged at 11.25 per cent.

    “This rate of 6.1 per cent is effective after home loan seekers has availed of all tax benefits and this is one solid reason which encourages youngsters between age group of 30-38 to register properties in their name for self-use,” said Dhoot.

    Source: Indian express
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