Gen Z Home Buyers India: Gen-Z are buying homes as soon as they get a job, 74% buyers are below 35 years of age …

Gen Z Home Buyers India: Common Indian families followed the rule of “save money, then buy a house”. Now, the trend of buying a house as soon as you get a job has started. 74% of the houses sold in the country are being bought by people below 35 years of age. Of these, 32% are below 25 years of age.

The average age of home buyers has decreased from 38 to 34 in six years. This was revealed in the survey “How India fulfills the home dream” by Basic Home Loans, a home loan aggregation and distribution platform. According to the survey, high income people are ready to pay up to 50% of their annual income as EMI for the house. Fast processing on digital platforms is attracting young buyers. However, they insist on taking loans from a trusted financial institution that is at least 50 years old.

This survey was conducted on 23,000 people of different ages. Of these, 31% had an annual income of more than ₹5 million. Additionally, 29% had income up to ₹5 million, 20% between ₹5 million and ₹1 million, 7% between ₹1 million and ₹2 million, 4% between ₹2 million and ₹3 million, and 9% between ₹3 million and ₹4 million.

Of these, 91% were men and 9% were women. The share of women in purchasing houses is continuously increasing. In 2024, women completed 1.29 lakh residential transactions in the top cities, which is 14% of the total deals in those cities. Interest rate, processing and trust are important in home loan.

Interest Rate: 50% of Millennials and Gen-Z said that interest rate is the most important factor in home loan. Small fluctuations in interest rates also have an impact.

Approval Time: Gen-Z and Millennials consider loan processing time very important. People prefer banks or platforms that process the loan within 24 or 48 hours of applying.

Reliance: This is an important factor. People look for reliable institutions for loans. 33% people above 60 years of age prefer to go to bank branch for loan.

Transparency: Survey participants said that transparency in the process, clarity on fees and hidden charges impacts the credibility of an institution.

Gen-Z are less likely to trust advice from friends when buying a home. Only 9% of 21-24 year old people take home loan on the advice of friends. Maximum 14% people aged between 50-60 years buy houses on the advice of friends. 11% of people aged 60+ take advice from friends while buying a house. People with low income are ready to pay 25% of their income in EMI.

Those whose income is up to Rs 5 lakh, are ready to pay 25% of their income in EMI. 40% people with income between ₹11 lakh to ₹40 lakh were ready to pay EMI. People with income higher than this wanted to buy a house by paying 50% EMI. 74% of home loan takers were in the income group of ₹11 lakh to ₹20 lakh. 47% of village people considered paperwork as a problem in taking loan, whereas in metro cities it was 45%. 76% people considered excessive documentation and false promises as major problems in taking home loan.