Why should Millennia homebuyers continue to buy their first home in 2023?

Millennial demography has morphed into the first-time homebuyers since covid pandemic outbreak on the grounds of safety, security, and stability. Home as an asset has once again emerged as the investment priority amidst polycrisis and global economic ambiguities. The career mobile youths have reinforced their trust into homebuying as a safe nest for comfort and convenience.

Owning a piece of land or home is a dream of all the emerging millennials to enjoy the aspirational lifestyle. Every youth in their formative years yearns for their private home to spend quality life and crystallize their dreams. Hence, owning a home is the most auspicious investment one can capitalize on and today, the time is right.

Today the plight of rising mortgage rates will have a ripple effect on rate-sensitive sectors such as housing. But the interest rate will get cooled off as the geo-political crisis stabilizes and inflation headwinds are tamed. Home loan is widely opted at a floating interest rate, which averages out positively in the long tenure. Thus, the underpinned sentiment of buying a home will continue to augur well amongst the millennial homebuyers

Homebuying has truly become the priority of the millennials and they may take the plunge with secured jobs and income stability. The fear of layoff is lingering over in the year 2023 amidst cost rationalizing spree in the labour market, brewing wait and watch mode among the fence sitters. As the property prices increase across key markets due to inflation and rising demand, it is sensible to buy the home today before the price rises further.

The NRI talent is strongly contemplating investment in the Indian real estate sector to catapult currency depreciation advantage. Additionally, they are keen on locking in secured assets amidst rising job uncertainties in the global markets. The looming layoff threat may nudge the NRI talent pool to assess safe nest buying in the homeland as it provides safety cushioning with relatively affordable cost of living in comparison to the US and UK.

Housing demand may cement stronger in the first quarter of 2023, but demand in the following quarters will fairly depend on how geo-political turmoil unfolds in the global market. India cannot be decoupled from the snowball effect of looming recession threats in the western economies and may bear repercussions to an extent dampening the pace of growth. This may lead to slowdown in jobs market, layoffs, rise in cost of credits, supply chain fragility which may impact realestate demand momentum. Hence, the future remains uncertain at global level as it depends how economies pan out.

The Indian real estate sector is labour intensive and a major contributor for GDP growth. The upcoming union budget 2023 will roll out impetus to bolster its pace of growth with a cumulative effect of India’s economic growth against its global counterparts. Hence, home buying should be your priority if it befits your affordability quotient.