First time home buyers are preferring sensibly priced homes over luxurious spaces
Various reforms and initiatives taken by the Government is reshaping the realty sector bringing in transparency. These initiatives have created the space for realty developers as well as prospective home-buyers to gain back their trust in the sector. Today, the youngsters are farsighted and tend to work towards achieving their goal of owning a dream house at an early age itself. But the ever-increasing pricing of units are deterring them to live their dream. As per a study conducted, 80% of the first-time job seekers expressed that the very first thing they want is a house of their own. Unfortunately, there is a huge gap between what is offered and what they can afford.
As per the Indian Brand Equity Foundation, under the Pradhan Mantri Awas Yojana (PMAY) Urban 1,427,486 houses have been sanctioned in 2017-18. In March 2018, construction of additional 3,21,567 affordable houses was sanctioned under the scheme. The Prime Minister’s Housing Scheme is one of the major government reforms that has benefited a number of people from the mid-segment of the society. This has also been beneficial to the millennials who are willing to fulfil their dream of owning a house at a young age.
Reasons why first-time home buyers are choosing sensibly priced homes
Fresh graduates shifting to cities for job and other relatable purposes look out for shelters at first. With influx of so many migrants in the city, the rental rates have gone up consuming about 50-60% of a new joinees’ income. Moreover, with PMAY scheme entering into the industry, realty developers have experienced a major demand from these young workforce, especially due to the reasonably pricing of units. Along with these, government has come up with multiple benefits, enabling the home seekers to finally own a house.
- Fulfilment of basic needs
As known to us all, the Government’s initiative to provide ‘Housing for All by 2022’ has given a significant impetus to the common man’s aspirations for a shelter. A sensibly-priced house satisfies the fundamental need of providing a shelter and owning such a house will not pinch pockets. This will further cater to their basic day-to-day necessities.
This is one of the major reasons that is increasing the demand of sensibly priced homes in the real estate industry. The affordable nature of these homes are catering the needs of the people across countries. The youngsters or the first-time homebuyers having just started their career would surely not be able to get involved in a large sum of investment. Also, big home loans might be scarier to them, thinking of the financial restraints over a period of time. For them, such a sensibly priced home is an ideal choice that would need minimum loan from banks.
- Freeing up funds
A sensibly-priced house would not be a strain on a youngster’s finances. For instance, he/she might be the only one supporting their family financially. A sensibly-priced home would protect the entire family from otherwise huge financial issues, enabling them to be free of worries about their emergency funds or day-to-day expenses.
- Easy home loans since small amount needed
Because of subsidized interest rates on home loans under this PMAY scheme, home seekers can actually avail a home loan without fearing any financial engagements. Under this affordable housing, banks provide prospective homebuyers with 80% of the cost of units as house loan. The buyers only need to provide the rest 20% of the total cost. This initiative has given a major boost to people looking out for home loans, thereby dreaming to have a house of their own.
Possessing a house ensures a sense of security and stands out as a lifelong investment. Being on the affordable side, a number of people can now get away with their rental apartments and own a house of their own. While with increase in demands for sensibly priced houses, the sales have shot up across the locations, it has also brought a fresh approach for real estate developers. Responding to an increasingly well-informed consumer base and, bearing in mind the aspect of globalisation, Indian real estate developers have shifted gears and accepted fresh challenges. Having a strategic plan to cater to these demands along with providing the best quality service, the realtors are going beyond their boundaries. Therefore, the industry is set to grow both in terms of quantity and quality; thereby attracting first time home buyers.