Traditionally, real estate has been predominantly occupied by men, with women often assuming the role of an influencer. Over time, however, women’s involvement has steadily increased, marking a significant evolution in the sector. As women achieve financial independence, their active participation in property transactions and decision-making processes is a welcome progression. Recent reports from the last few years indicate that women home buyers comprised 30–35% of Indian homebuyers, with a notable 65% opting for real estate investments over traditional avenues such as gold or stocks.
The growing role of women in real estate
Women are now driving the real estate sector to new heights through their pivotal roles as property consultants, agents, developers, and homebuyers. As builders and developers, they spearhead advancements within the field, while as buyers, they assert their financial independence through property ownership. In brokerage roles, they offer essential support and consultancy to clients, leveraging their superior understanding and patience, particularly evident in their empathetic approach towards homebuyers’ sentiments. Consequently, women in real estate have garnered trust from their clientele, fostering mutually beneficial relationships.
Women homebuyers are driving real estate demand
- When seeking a home, women buyers would drive demand for ready-to-move units and bigger homes. This is catalysed by the shorter waiting period, which facilitates quicker relocation. Most female investors are also married and are encouraged by their spouses to put their names on property documents.
- A single woman buyer prioritises locations near their workplaces and neighbourhoods that align with their values, providing a sense of acceptance, safety, and happiness.
- For families, larger homes close to nature and well connected to urban centres are sought, with customised options to meet specific family needs. Studies conducted by property consultants indicate a preference for properties priced above Rs 45 lakh, with approximately 20% expressing interest in luxury homes exceeding Rs 1.5 crore, emphasising a desire for spacious accommodations and holistic living experiences.
Benefits for women homebuyers: encouraging growth in real estate demand
Women homebuyers enjoy several benefits, including PMAY and other schemes, property registration concessions, stamp duty cuts, specialised financial products, exclusive offerings from developers, and so on.
- To encourage women homebuyers, both the central and state governments have introduced schemes to incentivise women’s participation in residential real estate. For instance, the Pradhan Mantri Awas Yojana (PMAY) within the ‘Housing for All by 2022’ initiative encourages and mandates women’s involvement as co-owners when purchasing residential units in rural and urban areas. Targeting first-time homebuyers, this scheme offers subsidies ranging from Rs 2.30 lakh to Rs 2.35 lakh based on the applicant’s annual income bracket under the Credit-Linked Subsidy Scheme (CLSS).
- Certain banks and financial institutions provide specialised home loan products tailored specifically for women. These products have various advantages, including reduced interest rates, extended repayment tenures, and flexible repayment options. For instance, some banks offer a 0.05% reduction in interest rates exclusively for women homebuyers, while others extend repayment tenures for up to 30 years. These unique features simplify the homebuying process and make it more financially feasible for women to invest in property.
- Additionally, lower stamp duty rates for women have proven to be a significant incentive, attracting more female buyers to the real estate market. Across numerous states in India, women enjoy a reduced stamp duty rate when they invest in property, effectively enhancing the affordability of real estate transactions. For instance, in Delhi, women avail themselves of a reduced stamp duty rate of 4%, whereas men typically incur a 6% stamp duty, leading to significant savings. Likewise, in Maharashtra, the government extends a 1% concession on the standard 6% rate for women homebuyers, further incentivising their participation in the real estate market.
Women’s empowerment is reshaping India’s real estate sector, fostering diversity and innovation across development, investment, architecture, and brokerage roles. With increased female participation, the industry experiences a positive disruption, marked by a balanced workforce, enhanced creativity, and a deeper understanding of homebuyers’ needs. Women are contributing in professional capacities and emerging as key decision-makers in property investments, propelling inclusivity and sustainability within the real estate market.
(The author is executive president, residential business, Embassy Group)
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