A lot has been said about the gifting of a house as the most perfect gift on the occasion of Mother’s Day for your mom. Mothers have in that sense always influenced home purchase decisions in India. With economic independence, she is fast emerging as a catalyst for buying a property. How much the mother factor influence the property market?
“When you ask me about the correlation of property buying and motherhood, I get amused. The question is borne out of the fact that many reports, of late, have only talked about women deferring marriage for asset building with property acquisition. But wait! Property buying has always been about mothers’ quest for social security of children since time immemorial. I learnt about it from my mother in my teens. She was a great saver for the sole purpose of buying a house before my father got retired and we had to vacate the official accommodation,” said Vineeta Raghav, a mother of two.
What Vineeta said about the mothers’ role in property purchase is the reality across the world, with India being no exception. As a matter of fact, mothers’ role in the property market is even more profound in India, given the cultural context. While the popular narrative might be all about the young property buyers, women included, before the marriage, a closer look at the buyers’ profile across the country suggests that women plan their motherhood when they have a place of their own.
Hence, 8 out of 10 homebuyers across the top 10 property markets in India buy a house within the first 10 years of their marriage when they have one or two children not only for social security but social respectability that comes with one’s own house, shows Track2Realty Market Survey.
How mothers contribute to the property market?
- Mothers are the biggest influencers and/or catalysts for homebuying.
- A mother is an owner/co-owner in eight out of 10 houses being sold.
- Indian mothers perceive a piece of property as the biggest social security.
- Seven out of 10 mothers would give up their gold for a piece of property.
- Mothers far outnumber single women in property purchase.
- Most of the working mothers have more than one property.
- Indian mothers gradually embracing the idea of buying commercial properties.
- Houses account for nearly 60% net-worth of single mothers.
(Source: Track2Realty Market Survey)
It is needless to mention that the best instrument of social security and emotional comfort in India is to have a house. With mothers being the home makers or the custodians of a house, her role is increasingly getting more prominent.
Most of the industry stakeholders agree that a property is what a mother finds comforting for her children. Even when she can’t afford to buy a house outrightly, she would prefer to have it by proxy through new property investment tools. Commercial property is gaining ground among the small ticket investing mothers.
Shiv Parekh, founder and CEO of hBits, said it is also the part of a mother’s retirement planning. A mother’s duty never ends but as much as she cares about everyone else, it’s also important that she prioritizes her own wellbeing, he said. For working mothers, balancing professional life with family duties is a constant juggling act. Retirement planning is not just important, but necessary for securing a mother’s future. Investments in fractional ownership offer an accessible entry point into the real estate investment, enabling them to diversify their portfolios. By investing in Real Estate Investment Trusts (REITs), particularly SM-REITs, working mothers can get good returns in long term.
“Commercial real estate, which has seen a 15% appreciation over three years, allows flexibility and reduces the financial burden linked to traditional real estate investments. It provides consistent income, asset security, liquidity, tax advantages, and ease of ownership, making it an attractive investment in real estate. Working mothers can start small and gradually increase their holdings over time, all while benefiting from potential appreciation and rental income. With the investment ticket size now proposed to be lowered to as low as Rs 10 Lakh (1 Mn), real estate investment presents a significant opportunity, especially for the Indian middle-class women. It’s a strategic approach that ensures financial security without sacrificing their family and careers,” said Parekh.
Shalini Awasthi, a mother of a new-born, said even though she could not buy a house immediately, she has plans to invest in a commercial space with a lower ticket size. According to her, property is the best suited asset class, and the appreciation of the commercial asset would eventually help her to buy a house when she disposes of that property in the next few years. It could also serve her other objectives.
“I am not a gold person; I also understand that bank fixed deposits are offering lower interest than inflation. So, what are my options to secure the future of my child, be it in terms of buying a house or having a commercial space, proceeds of which could be used for the higher studies of my daughter. It is not just about the sentiments of having a house of my own that is driving me to the property market, but also the social security factor,” added Shalini.
The role of women homebuyers has been thoroughly discussed in the Indian property market. The role of mothers has not got its due importance as they are mostly seen as co-owners of the property along with their husbands. However, mothers have always been influencers in homebuying, nowadays they are the major catalysts as they are financially independent. Working mothers and single mothers are also active in property buying.
(The author is the CEO – Track2Realty)
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
Ravi Sinha is a journalist with nearly two decades of cross-discipline media exposure. He is the CEO of real estate think-tank group Track2Realty. He has been writing extensively on the real estate sector for nearly a decade. Evaluation of real estate brand performance is his expertise and he has immense insight into consumers’ psychograph in the property market.
Twitter: https://twitter.com/ravitrack2media
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