According to a joint survey of 10 cities in India by the Indian Institute of Management, Bangalore (IIM-B) and Magicbricks (MB), Ahmedabad tops the list of youngest real estate buyers.
The survey titled Housing Sentiment Index (HSI) is jointly developed by IIM-Bangalore (IIMB) and Magicbricks (MB) and is based on an online survey of prospective home buyers after careful screening by MB and IIMB.
A total of approximately 3,000 buyers are surveyed every quarter in an online survey across 10 cities Mumbai, Delhi, Hyderabad, Pune, Noida, Gurgaon, Bangalore, Chennai, Ahmedabad, and Kolkata.
The HSI index for youngest buyers in the 18-25 age group puts Ahmedabad at 131. On the other hand, Kolkata topped the list of oldest buyers in the 50 years and above age group at HSI of 131.
In terms of housing prices, the value of HSI can range from 0 to 200.
A score of 100 represents neutrality, meaning people do not expect house prices to either increase or decrease.
A score of 200 indicates that all respondents expect house prices to increase. A score of 0 indicates that all respondents expect house prices to decrease.
The index also highlighted price sensitivity among real estate buyers in Ahmedabad.
The city saw 62 percent of those earning less than Rs 10 lakh per annum (HSI 84) look to buy in Ahmedabad while 30 percent plan to buy in Gurgaon (HSI 144).
Moreover, over 51 percent of those living in their own houses intend to buy property for residential purposes, implying a move to a bigger/better residence. In Ahmedabad, such respondents are 60 percent (HSI 83).
Among other factors, Bangalore has the maximum IT crowd (51 percent, HSI 141) while Ahmedabad has the maximum self-employed (25 percent, HSI 92) and retirees (4 percent). Noida which increased by 33 per cent in the previous quarter, fell by 4 per cent to 124 while Hyderabad fell by 4 per cent to end at 97.
Ahmedabad is the only other city with an HSI below 100.
In Ahmedabad, of the buyers 59 percent want to purchase property within the next six months (HSI 102) while 22 percent are ready to wait a year or more (HSI 105).
The HSI survey is conducted by the Indian Institute of Management Bangalore-Century Real Estate Research Initiative (IIMB-CRERI) which was set up through a grant from Century Real Estate as well as Magicbricks.