Millennials prefer safety over investment returns on houses

Millennials between the age of 30 to 34 years, placed more importance on safety, and security of the home than on return on investment, fancy amenities, and proximity to work, which some of the older age-groups preferred.

For 40 to 49 year olds, safety of the investment was the biggest consideration. 64 per cent of the respondents between 50 to 55 years of age wanted to buy a new home as their current home was unable to meet their changing requirements.

A research by OLX and Kantar TNS highlights that home buying trends are being influenced by the ease provided by online property platforms, and the entry of millennial buyers in the market. Almost four out of five people now rely on online property sites to find leads and information related to the homes they are interested in.

The research was conducted with more than 600 respondents in Delhi, Bangalore, Hyderabad, and Thiruvananthapuram by Kantar TNS, a market research firm. The survey interviewed people who were looking to buy a home in the next six months, and sought to understand the user behaviour in an evolving real-estate market.

Irwin Preet Singh Anand, COO, OLX India, said, “Real Estate is one of our fastest growing categories. Listings on OLX grew at 55 per cent, and property seekers grew at 70 per cent in the last quarter, showing strong signs of recovery post demonetization induced slowdown.”

“Indian Real Estate market is at a critical juncture, with strong regulatory momentum through RERA and GST around the corner. The sector is expected to be more professionalised and transparent, enhancing buyer trust and consequently driving transactions.

As more and more buyers turn to OLX, this research will strengthen our understanding of the home-buyer’s needs, and will improve our offering to help them discover their dream homes,” added Anand.

Key triggers for buying a home

Most people primarily want to buy a home because they consider it to be a good investment, with 65 per cent of the respondents stating that it was the main trigger for them to consider purchasing a home. This was closely followed by 60 per cent of the respondents, who said that they want to buy a home in order to move to a safer locality, and 58 per cent who said that space and a bigger home were the key triggers for them.

Bengalureans paid most attention to how safe their investment was in the home they were considering. They also looked at better amenities, and security while buying a home. For Hyderabadis too, a desire to make a safe investment, closely followed by the wish to live in a safe location, was the most important reason for considering residential property purchase. For Delhi-ites, reduced travel time to work, followed by a good return on investment were the key factors while considering a home for purchase.

Immediate triggers for home purchase

Drop in property rates is the biggest reason for people to immediately start looking at potential homes for purchase with one-third of the survey respondents claiming so. A new life-stage was also a time to consider buying a home. 13 per cent of the respondents said that extension in the family such as parents moving in was a time to consider buying a home, and 11 per cent said that the arrival of a baby prompted them to think about investing in a house.

Two-thirds of real-estate agents are discovered through online portals

On an average, a potential home buyer contacts six agents, and personally meets four of them. Two-third of the agents are actually discovered through online property search sites. In a complete purchase cycle, a potential home buyer on an average visits 10 properties before finalising the purchase.

Hyderabad and Bangalore residents are more decisive, and required seven and six property visits respectively in comparison to Delhi and Thiruvananthapuram residents, who made 11 and 15 visits respectively before purchasing a home. Sachin Hajela, Group Account Director, Kantar TNS, said, “This study explores how online property avenues have increasingly become important in the property purchase journey, and in empowering a property seeker.

The benefits of online in handholding a property-seeker in the initial journey of shortlisting a property, contacting a seller/ broker has resulted in online becoming the starting point for 80% of property seekers. With granular detailing of property emerging as a prime need, online has a huge potential to cater to this need, and further gain prominence in the property purchase journey” The research also revealed that nearly 70 per cent of the people relied on word-of-mouth sources, and 44 per cent sought real estate brokers to get information and leads.