A new wave of homebuyers is emerging in Bengaluru as millennials and Gen Z ditch renting in favor of owning property. The driving forces behind this trend are skyrocketing rental costs and increased income levels, creating a perfect storm for a shift in the city's real estate market.

The Numbers Speak Volumes

The median age of first-time homebuyers in Bengaluru has dropped significantly, from 42 to 34 in just three years. This change is reflected in the data, with millennials and Gen Z accounting for over 60% of property purchases in the first half of 2024.

The Rental Squeeze

Bengaluru's rental market has become increasingly unaffordable, with rents in prime areas skyrocketing by 45-50% in recent years. Faced with these high costs, young professionals are finding that buying a home can be a more financially sound decision.

Rising Incomes and Lucrative Rental Yields

Post-pandemic salary increases and a growing per capita income in Karnataka have given young people more financial confidence. Additionally, attractive rental yields in areas like Whitefield, Indiranagar, and Koramangala are incentivizing property purchases as an investment strategy.

The Millennial and Gen Z Buyer Profile

These young homebuyers are tech-savvy, value-conscious, and prioritize convenience. They're looking for ready-to-move-in properties or new inventory in prime locations, often with an eye on rental potential.

Expert Opinions:

• Saurabh Garg, co-founder of NoBroker: Observes that millennials and Gen Z are now the driving force behind Bengaluru's real estate market.

• Sunil Singh, director at Realty Corp: Notes a surge in deals in the Rs 1-2 crore range with buyers aged 28-40.

• Kiran Kumar from Hanu Reddy Realty: Attributes the increased housing demand among young professionals to rising salaries.

Conclusion:

Bengaluru's real estate market is undergoing a transformation, driven by the preferences and financial capabilities of millennials and Gen Z. As these young professionals embrace homeownership, developers and investors are adapting to meet their demands. This shift is not only changing the face of Bengaluru's housing landscape but also redefining the concept of homeownership for a new generation.

-source: moneycontrol.com