Banking News

home loan demand: Nearly 53% home loan demand from millennials, Gen Z: Study


Millennials and Gen Zs, in the age group of 18-34 years, constituted 53% of the total demand for home loans in India between October 2022 and October 2023. While male applicants contributed to 74% of this demand, female applicants constituted 26%, showed a Magicbricks study.

The property portal also observed that 58% of the demand for home loans is for the affordable segment with price tag of up to ₹40 lakh. Gurugram was the only outlier, where demand for home loans of the ticket size ₹40-60 lakh was also significantly high at 25%; followed by the demand for loans of ₹1-1.5 crore at 13%.

Around 80% of the demand originated from residents in tier 1 cities and Mumbai with 22%, Bengaluru with 19%, and Noida with 17% were among the lead home loan disbursement regions.

“There is a discernible shift in the investment preferences of Gen Z and millennials towards real estate, mirroring a similar trend in the home loans category. With a stabilised repo rate, real estate remains an attractive investment asset for this demographic, and we expect a sustained surge in demand in the forthcoming months,” said Nimesh Bhandari, business head-home loans, Magicbricks.

To facilitate smoother home loan procedures, Magicbricks has partnered with over 50 financial institutions and is targeting a five-fold growth, with enhanced convenience and accessibility for customers, he said. Magicbricks also shared that HDFC, SBI and Bajaj Housing lead in terms of home loan applications on its platform.

(Magicbricks is a part of Bennett, Coleman & Co Ltd, which publishes The Economic Times)


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