Mumbai: While Baby Boomers, Gen X, and millennials prefer to buy homes in India, Gen Z shows a notable difference and leans towards renting a place, according to a report on Thursday.
According to a Knight Frank report, baby boomers favour investments, but millennials prefer to upgrade their property. The reasons for purchasing a home show distinct generational differences.
About 79 percent of Baby Boomers, 80 percent of Gen X, and 82 percent of Millennials favour homeownership, while among Gen Z, only 71 percent prefer to own a home, and a high 27 percent lean towards renting.
Millennials (39 per cent) and Gen Z (36 percent) are leading the trend of upgrading and purchasing for end-use, while Baby Boomers display a stronger interest in investments (29 percent) and retirement plans (15 percent).
Overall, 37 percent of respondents are upgrading to a better home, reflecting a growing shift towards mid-range and luxury housing, which was traditionally concentrated in select cities but is now expanding to Tier 1 cities in India.
The remaining 32 percent are first-time homebuyers for end-use, 25 percent are investing, and 7 percent cite other reasons, such as retirement or acquiring a second home or vacation home, the report mentioned.
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The report further revealed that 52 percent prefer apartments, followed by studio apartments at 19 percent and independent houses or villas at 17 percent.
About 79 percent of respondents indicated that home loans were their preferred mode of financing for purchasing a home.
Overall, 80 percent of respondents expressed a preference for owning a home, with only 19 percent opting for renting and a mere 1 percent remaining uncertain.
According to Shishir Baijal, Chairman and Managing Director of Knight Frank India, the company anticipates a resilient real estate landscape that aligns with India’s broader development goals.
Location stands out as a priority and is the determining factor for 50 percent of respondents, affirming its timeless importance in real estate.
The builder’s reputation (35 percent) and proximity to the workplace (33 percent) play important roles, reflecting a strong demand for reliability and convenience—key factors that enhance buyer confidence in their long-term investment.
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–IANS
