How is Young India Becoming The Force Behind The Indian Real Estate Evolution?

Young Indian Homebuyers Redefining Property Preferences

With increasing disposable incomes, India's youth are making a significant impact on the real estate market, prioritizing homeownership that aligns with their evolving lifestyles. Let’s delve into the trends and preferences shaping their property choices.

Homeownership Over Renting: A Growing Trend

A recent survey by a global real estate consulting firm, involving over 20,000 participants, reaffirmed the importance of homeownership among young adults. The study found that over 70% prefer buying a house to renting. This preference, coupled with India's economic growth, has amplified the aspiration for homeownership and security.

Urban Appeal: City Centers Remain Prime Locations

Contrary to the notion of a mass exodus from urban areas, a report has noted that properties near city centers are still highly sought after by potential buyers. This finding counters the belief that workplace flexibility is driving people away from urban centers.

The Generational Perspective on Location

The survey highlighted a notable trend: Indian respondents are more open to relocating compared to their global counterparts. About 44% showed a willingness to move within the next two years, a significant jump from 31% in the previous period. This inclination is particularly strong among younger generations, indicating their role in shaping future housing demands. Interestingly, while most generations prefer locations near city centers, Gen Z shows a unique preference for remote areas and even international relocation.

Millennials at the Forefront of Housing Demand

Millennials in India are a key demographic driving housing demand. Factors like urbanization, a flourishing middle class, and a young, driven workforce are contributing to this. Rajnish Chadha, a property agency owner, observes that millennials' evolving lifestyles, increasing incomes, and the hybrid work model are influencing real estate dynamics. The rise in dual-income households has also enhanced home affordability for this age group.

Rental Accommodation: A Viable Alternative for Gen Z

Pradeep Dhariwal, a real estate firm executive, notes that a significant portion of the youth still opts for rental living. Around 40% of Gen Z prefers renting, with a focus on private rentals, student housing, and shared accommodations. This trend underscores the need for developers to strategize for the growing rental market demand.

Design and Lifestyle Preferences in Home Buying

Today's buyers, particularly the younger generation, prioritize not just location and budget but also the design and ambiance of their homes. They expect properties to offer quality interiors, well-planned outdoor spaces, and remote working infrastructure. Property experts feels that the demand for 3BHK apartments is rising, offering a balance between space, affordability, and suitability for first-time homebuyers.