Young Homebuyers Drive Housing Boom in Emerging Indian Metros

A Magicbricks report reveals that individuals aged 18-34 exhibit the strongest housing sentiment, favoring affordable properties in metros like Pune, Thane, Gurugram, Hyderabad, Ahmedabad, and Noida. These areas offer a blend of aspirational value, rising prices, and increased housing supply catering to young investors' demand for affordability and infrastructure.

According to a report by Magicbricks, young homebuyers aged 18-34 display the most robust housing sentiment, with their Housing Sentiment Index (HSI) reaching 160, surpassing GenX and Baby Boomers whose indices range from 141 to 156. The report emphasizes how this demographic is drawn to properties priced between Rs 20-75 lakh and sizes spanning 500-1,500 sq. ft., illustrating their penchant for affordable, optimized living arrangements.

The report highlights Pune, Thane/Navi Mumbai, and Gurugram as top choices for the 18-24 age group, attributing their popularity to established employment centers and aspirational appeal. In particular, Gurugram experienced a 17.4% surge in housing demand year-on-year, coupled with a 32.5% rise in average prices, now at Rs 14,650 per square foot. The city also noted a 35.85% growth in under-construction housing supply in the third quarter of 2024.

For buyers aged 25-34, Hyderabad, Ahmedabad, and Noida/Greater Noida emerged as preferred investment locations, propelled by infrastructure developments and strong housing demand. Notable trends include a 3.2% quarter-on-quarter price increase in Hyderabad, a stable affordability in Ahmedabad, and an impressive doubling of property prices in Noida/Greater Noida over the past year.

(With inputs from agencies.)