Real estate trends: Will the sector witness a rise in women homebuyers in 2024? Experts decode

Women are emerging as key homebuyers. Experts believe that the surge in women homebuyers in India is driven by several factors. Will this trend continue in 2024? What do industry experts have to say? Livemint takes a deep dive into why women are emerging as key homebuyers. 

How much concession do women borrowers get on home loan interest rates?

Many banks and financial institutions offer special concessions on home loan interest rates for women borrowers, which can vary from lender to lender.

“Generally, the concession ranges from 0.05% to 0.10% on the standard home loan interest rates,” said Kamaljeet Rastogi, Chief Executive Officer, of Manipal Business Solutions.

“Additionally, depending on the region and state, women borrowers can also get a discount of approximately 1% - 2% on stamp duty charges,” said Rahul Mehrotra, MD & CEO, RHDFCL

This initiative is often aimed at promoting gender equality in financial matters and encouraging women to invest in real estate.

Challenges and Opportunities of Women While Purchasing Property

Despite having a better risk profile than other categories of borrowers, women continue to face many challenges while accessing formal finance. While women encounter challenges like gender bias and financial literacy gaps, government schemes and incentives present opportunities for them in the real estate sector.

“Women face challenges in buying homes, including gender bias, financial barriers, limited awareness, and safety concerns,” said Kamaljeet Rastogi

As per Rahul Mehrotra, there are opportunities for women borrowers. These may include:

Lenders offer lower stamp duty and lesser rate of interest (RoI)

Various government initiatives supporting women across states

“Women enjoy higher loan eligibility, lower interest rates, and tax benefits. The Pradhan Mantri Awas Yojana (PMAY) offers a 6.5% interest subsidy for women in the Economically Weaker Sections (EWS) and Lower Income Group (LIG), irrespective of marital status. Additionally, reduced stamp duty charges further incentivize property acquisition,”said Pramod Kathuria, Founder and CEO of Easiloan

Have women taken a loan before 30?

Before hitting 30, many Indians consider taking loans for various reasons like education, home buying, or business ventures.

“We have been witnessing a gradual increase in the younger population, below 30 years, applying for loans on aY-o-Y basis. We expect a growth of approximately 50% - 60% in FY 2024,” said Rahul Mehrotra.

As per market estimates, the average age for Indian consumers to take their first credit card is 28 years, while the average age for the first personal loan and the consumer durable loan is 29 years.

Money experts say that 40 - 45 percent of first-time home loan borrowers are between the age group of 30 years and 40 years.

Tax deductions on home loans

In current times, women are also equally eligible for the deduction on home loans. If the property is owned solely by women, then they are eligible for a deduction up to ₹1.5 lakh. Despite this, if the property is owned by both husband and wife then both are eligible for a tax deduction. 

As per CIBIL, women borrowers will grow at 19 percent CAGR in the next five years.

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.