Millennials and Gen Z Lead the Charge in Housing Sentiment

New Delhi, October 17, 2024 – The real estate landscape in India is experiencing a significant shift, with young homebuyers aged 18-34 driving market trends and making bold investments. According to the latest Housing Sentiment Index (HSI) report from Magicbricks, this demographic showcases a remarkable housing sentiment score of 160, outpacing both Generation X and Baby Boomers, who have sentiment scores ranging from 141 to 156. This data reveals not only an eagerness to invest but also a clear preference for budget-friendly housing options.

A Focus on Affordability and Space

The Magicbricks report highlights that young buyers are gravitating towards properties within the budget range of INR 20-75 lakh and favoring sizes between 500 and 1,500 square feet. This focus underscores a desire for affordable living spaces that do not compromise on quality or usability. As young professionals increasingly seek independence and stability, the demand for well-priced, efficiently designed homes continues to rise.

Top Cities for Young Homebuyers

The report delves deeper into the preferred cities for investment among different age segments. For those aged 18-24, Pune, Thane/Navi Mumbai, and Gurugram emerge as hotspots. These locations benefit from established employment hubs, making them attractive for young professionals. Gurugram, in particular, has seen a remarkable 17.4% year-on-year increase in demand, with prices skyrocketing by 32.5% to INR 14,650 per square foot. The ongoing expansion of under-construction supply, which rose by 35.85% in Q3 2024, further enhances the city’s appeal.

The 25-34 Age Group: Investing in Growth Areas

Meanwhile, the 25-34 age bracket shows strong enthusiasm for markets like Hyderabad, Ahmedabad, and Noida/Greater Noida, reflected in their HSI scores of 180, 171, and 169, respectively. These cities are benefiting from significant infrastructure developments and increasing demand for residential properties.

Hyderabad stands out with a quarter-on-quarter growth of 3.2%, pushing average rates to INR 8,188 per square foot as of Q3 2024. In contrast, Ahmedabad remains an attractive option for budget-conscious buyers, with an average price of INR 5,927 per square foot. Popular micro-markets like SG Highway and Bopal offer prices ranging between INR 5,500 and 7,900 per square foot, appealing to those seeking affordability.

Noida/Greater Noida has emerged as a prime investment destination, witnessing a staggering rise in residential rates. Over the past year, prices have nearly doubled to INR 11,625 per square foot, with the under-construction segment seeing a phenomenal 69% year-on-year price increase, from INR 7,547 per square foot in Q3 2023 to INR 12,758 per square foot in Q3 2024.

Conclusion: A Promising Future for Real Estate

As young homebuyers increasingly make their mark on the real estate sector, their preferences and investment patterns are shaping the future of housing in India. With a clear inclination towards affordability, strategic locations, and growth potential, this demographic is not just participating in the market—they are redefining it. The insights from the Magicbricks report highlight the evolving landscape of homeownership, driven by a generation that values both practicality and aspiration.