Different Income Levels, Different Destinations - An Insight
The older generation may still think that real estate investment is a bit risky and may say a strict no-no when it comes to a second home. On top of that the hassle of EMI may be even more disturbing making them feel it's an extra liability imposed. According to them gold can be a safe mode of investment than all these hassles.
But what does the younger generation feel? The data and the market watchers' notions reveal that the trend in the market is quite opposite with the younger generation plunging in to real estate investment and they are also looking for greener pastures as well. If one is under the notion that real estate investment is a man's job, then today's women have proved it wrong. The latest edition of (HSI) Housing Sentiment Index reveals that Mumbai's women constitute quite a considerable number of real estate investors with few cities also showing similar trends with the Pune's women topping the list of women investors in the last quarter ending September 2014.
Bangalore is a promising venue of real estate investment with lot of happening in the market with new infrastructure being created in each area and IT hubs being established with government's plan of a smart city. The market watchers of Bangalore opines that, of late there has been a trend of affordable housing in Bangalore and many developers like Dreamz Infra is in the fray among many, in constructing affordable houses for middle and lower middle class. This market segment being huge has opened doors for new business niche for the real estate market. There is another class of buyers in markets like Bangalore who consider property buying as an investment and are investing in places like North Bangalore with improved infrastructure, mostly in the price range of Rs. 40 to Rs. 60 lakhs.
Another trend noticed is the shifting of middle class buying from cities like Chennai and Bangalore to places like Hyderabad in search of greener pastures. In answering the question of why are people shifting to Hyderabad, the market observers have noted few reasons for that as well.
The observers have noted that people with multiple house properties in cities like Bangalore and Chennai are even selling their properties and are opting to buy properties in Hyderabad. Few feel that the taste of success in real estate investment has made them migrate to greener pastures and look for favourable market conditions. The reason to migrate to Hyderabad is the cheaper rates of property per sq. ft. as cited by the experts. They also feel that the buyers' assessment of affordability is higher in Hyderabad compared to other cities like Chennai, Bangalore, Kochi or Trivandrum.
Another notable observation in this regard is the migration of Indian buyers in terms of property investment to other countries. According to the data of NAR (National Association of Realtors), the investment by Indian buyers in the property in US has increased by 50 per cent in the year ending March 2014 with an increase of $ 5.8 billion. The report of NAR states that the cities targeted the most by Indian buyers are Las Vegas, Chicago, Dallas, Los Angeles and New York. Not only the US, Indian buyers are also investing in homes of UK, Singapore, Australia and other parts of the Europe as well. The observers feel that these buyers are the honchos of mainly the IT industry who has frequent visits to these countries or are staying there for a longer period by dint of their work requirements.
With all these changing trends of the real estate market, the younger generation has emerged as a significant chunk of investors with a recent study showing that 47 per cent of the investors in Bangalore being in the age group of 30 to 39 years. Thus young India seems to play a significant role in steering the course of real estate industry and with its more dynamic moves as discussed, the industry trends are sure to become more interesting in the near future.
But what does the younger generation feel? The data and the market watchers' notions reveal that the trend in the market is quite opposite with the younger generation plunging in to real estate investment and they are also looking for greener pastures as well. If one is under the notion that real estate investment is a man's job, then today's women have proved it wrong. The latest edition of (HSI) Housing Sentiment Index reveals that Mumbai's women constitute quite a considerable number of real estate investors with few cities also showing similar trends with the Pune's women topping the list of women investors in the last quarter ending September 2014.
Bangalore is a promising venue of real estate investment with lot of happening in the market with new infrastructure being created in each area and IT hubs being established with government's plan of a smart city. The market watchers of Bangalore opines that, of late there has been a trend of affordable housing in Bangalore and many developers like Dreamz Infra is in the fray among many, in constructing affordable houses for middle and lower middle class. This market segment being huge has opened doors for new business niche for the real estate market. There is another class of buyers in markets like Bangalore who consider property buying as an investment and are investing in places like North Bangalore with improved infrastructure, mostly in the price range of Rs. 40 to Rs. 60 lakhs.
Another trend noticed is the shifting of middle class buying from cities like Chennai and Bangalore to places like Hyderabad in search of greener pastures. In answering the question of why are people shifting to Hyderabad, the market observers have noted few reasons for that as well.
The observers have noted that people with multiple house properties in cities like Bangalore and Chennai are even selling their properties and are opting to buy properties in Hyderabad. Few feel that the taste of success in real estate investment has made them migrate to greener pastures and look for favourable market conditions. The reason to migrate to Hyderabad is the cheaper rates of property per sq. ft. as cited by the experts. They also feel that the buyers' assessment of affordability is higher in Hyderabad compared to other cities like Chennai, Bangalore, Kochi or Trivandrum.
Another notable observation in this regard is the migration of Indian buyers in terms of property investment to other countries. According to the data of NAR (National Association of Realtors), the investment by Indian buyers in the property in US has increased by 50 per cent in the year ending March 2014 with an increase of $ 5.8 billion. The report of NAR states that the cities targeted the most by Indian buyers are Las Vegas, Chicago, Dallas, Los Angeles and New York. Not only the US, Indian buyers are also investing in homes of UK, Singapore, Australia and other parts of the Europe as well. The observers feel that these buyers are the honchos of mainly the IT industry who has frequent visits to these countries or are staying there for a longer period by dint of their work requirements.
With all these changing trends of the real estate market, the younger generation has emerged as a significant chunk of investors with a recent study showing that 47 per cent of the investors in Bangalore being in the age group of 30 to 39 years. Thus young India seems to play a significant role in steering the course of real estate industry and with its more dynamic moves as discussed, the industry trends are sure to become more interesting in the near future.