Decoding the DNA of Residential Real Estate

Who is Buying and Why are they Buying ?

Demographics. To answer these basic questions we need to breakdown and profile the customer base. The easiest segmentation is on the basis of age and gender. The data of buyers/ investors by age and gender appears in the table below. It may not be accurate to the nearest percent but it is accurate enough for us to be able to derive meaningful insights from it.

As is apparent almost 60 – 80 % of the home buyers / investors are between 30 – 50 years of age which forms the largest customer constituency for the Real Estate sector. In  Tier I cities, due to the higher education levels, greater gender equality and financial independence the segment comprises of both Male and Female populations in the 20 – 40 years category. Whereas the Tier II/ III and Rural market segments are dominated by Males for reasons exactly opposite to those quoted above. So a generic targeting effort by real estate players needs to be made towards 20 – 50 year old Males and Females in Tier I Cities, whereas in the Tier II/ III Towns and Rural areas it is 30 – 50 year old Males who must be the focus of attention. Further differentiation in targeting, will depend upon the resources available for conduct of specific campaigns, for example, to address the 20 – 30 year old financially independent working women or the 40 – 50 year old urban homemakers who participate in and influence major family decisions or the 50 – 60 year old patriarchs in a rural area who even today lord over all major family and clan decisions, etc. With such clarity in segmentation it simply becomes a question of resources that can be applied by Companies to reach and influence a particular target population. It will further facilitate the designing of tailor-made products which appeal to each specific segment.

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