Mint Quick Edit | As housing looks up, we need affordable homes too
Summary
- India’s Millennial and Gen-Z homebuyers dominate the real estate market, even as ownership gets the better of renting. But pain points persist in terms of affordability and builder reliability.
By 2030, India’s Millennial and Gen-Z generations are expected to comprise about three-fifths of all new home buyers, according to a study by real estate services firm JLL.
Millennials are those born between the early 1980s and the mid-1990s, while Generation-Z folks were born between the mid-to-late 1990s and early 2010s. The urban home-ownership rate is also expected to hit 72% by 2025, up from 65% in 2020.
Also read: Mint Primer: Why India is now a ‘transparent’ property market
This indicates a growing preference for owning houses over renting them, even as rising pay levels among these age cohorts explain their expanding share of homebuyers.
Since this sector is among the biggest employers, robust demand for housing is broadly good for the economy. Several linked sectors, such as steel and cement, stand to gain.
Also read: Realty stocks lose some ground as property boom takes a breather
That said, affordability is an issue. Private housing projects in big cities increasingly seem to be upscale, while those seeking cheaper options have very little choice.
It’s also time for a review of the real-estate regulatory system enacted back in 2016 for its effectiveness, given reports of unfulfilled deliveries by some home builders.
While cheaper loans can aid demand, homebuyers also need to be confident of getting what they pay for.
Also read: Real estate stocks are roaring. But there is a dark side.
