Millennials, Gen Zs drive 53% of home loan demand: Report
A recent study by real estate portal Magicbricks reveals that millennials and Gen Zs, aged 18 to 34, make up 53% of home loan demand in India. Interestingly, 74% of these applicants are male, while 26% are female. Nimesh Bhandari, Business Head of Home Loans at Magicbricks, notes, "There is a discernible shift in the investment preferences of Gen Z and millennials toward real estate, mirroring a similar trend in the home loans category."
The affordable segment attracts the highest demand
The report also highlights that 58% of home loan demand falls within the affordable segment, with properties priced up to Rs. 40 lakh. Gurugram stands out with a high demand for home loans in the Rs. 40 to 60 lakh range at 25%, followed by loans for properties valued between Rs. 1 and 1.5 crore at 13%. Bhandari believes that the stabilized repo rate makes real estate an appealing investment for this age group, anticipating continued growth in demand.
Tier-1 cities lead home loan disbursements
According to Magicbricks's data, 80% of home loan demand originates from tier-1 cities, with Mumbai (22%), Bengaluru (19%), and Noida (17%) leading in home loan disbursements. Other cities like Delhi, Chennai, Hyderabad, and Pune also contribute to overall demand. The report is based on customer preferences on the Magicbricks platform from October 2022 to October 2023.
Magicbricks partners with financial institutions for smoother home loan procedures
To streamline home loan processes, Magicbricks has teamed up with over 50 financial institutions, aiming for fivefold growth. Bhandari emphasizes the company's commitment to providing customers with greater convenience and accessibility. During the review period, the real estate portal managed three to four lakh home loan applicants, reflecting the increasing trend of younger generations investing in real estate and seeking home loans.
