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ovember 11, 2024 / 16:50 IST
A recent survey by Knight Frank found that over 80% of respondents prefer owning a home, while only 19% opt for renting. This trend is consistent across generations, with Gen Z being the exception, where 71% aspire to own homes and 27% prefer renting.
Gen Z, comprising individuals aged 12-28 years, are buying their first homes five to six years earlier than Millennials (29-43 age bracket) did, relying heavily on home loans. In fact, between January and June 2024, Millennials and Gen Z purchased over 60% of properties listed on NoBroker's online platform in Bengaluru.
According to Knight Frank, more than 36% of Gen Zers are seeking to buy a home, the highest among all age groups. The average ticket size of these properties was between Rs 70 lakh and Rs 1.1 crore. This trend is expected to continue, with the BFSI sector facilitating growth through home loans, investment avenues, and risk management tools.
Strategic location is the top priority for potential buyers, accounting for 50% of their decision-making process. However, equal emphasis is also placed on property size and layout (45%), price and affordability (45%), and builder's reputation (35%). Financing options and future resale value are also crucial factors, with 29% and 22% of respondents citing them as key determinants.
The demand for home loans has seen a significant shift, with Millennials and Gen Z constituting 53% of the total demand in India. This trend is expected to continue, with real estate remaining an attractive investment asset for this demographic.
