80% Indians Prioritize Homeownership; Chennai, MMR, and Ahmedabad Lead the Way
A recent study by Knight Frank India reveals that 80% of Indians prioritize homeownership, with Chennai, MMR, and Ahmedabad showing the strongest sentiment. The trend is driven by rising disposable incomes and cultural preferences for property ownership.
HomeownershipReal EstateKnight Frank IndiaHousing MarketProperty TrendsReal Estate NewsMay 26, 2025
Two main markets that somewhat lagged in this regard were Delhi-NCR (74%) and Bengaluru (73%), due to higher property prices and a significant influx of young, migrant professionals who prefer rental accommodations over ownership.
The study, titled 'Beyond Bricks: The Pulse of Home Buying,' shows that 80% of respondents across the country have positive purchase sentiments. The report, which mapped various trends within the residential real estate space, noted that a significant majority (80%) of Indians still hold strong home ownership ambitions. This intent was noted to be the strongest among high earners with annual incomes above ₹5 million (91%) and millennials (82%).
The purchase sentiment was strongest in areas such as Chennai (86%), Ahmedabad (83%), and Mumbai Metropolitan Region (85%), driven by growing disposable wealth, greater financial stability, and cultural sentiments. Other regions, such as Kolkata (80%) and Hyderabad (81%), also demonstrated high ownership preference due to a desire for long-term security. Two main markets that somewhat lagged in this regard were Delhi-NCR (74%) and Bengaluru (73%), owing to higher property prices and an influx of young, migrant professionals who favoured rental accommodations over ownership.
Demographically, the purchase sentiment was most robust among high earners with annual incomes above ₹5 million (91%) and millennials (82%) due to their higher disposable wealth and better financial security. Respondents from Gen Z (71%) and lower-income groups earning less than ₹1 million annually (72%) had relatively lower homeownership sentiment due to affordability constraints, lifestyle flexibility, and early career mobility. This indicated a growing market demand for accessible financing solutions and entry-level housing options tailored to the unique needs of different consumer demographics.
As many as 1,629 respondents were interviewed from across the top eight cities in the country. Shishir Baijal, Chairman and Managing Director of Knight Frank India, commented, 'Homeownership has emerged as a robust and enduring trend, particularly in the post-pandemic period, resulting in a marked increase in residential demand. This momentum was further supported by proactive measures undertaken by regulatory authorities, including extended reductions in repo rates and buyer-centric incentives such as stamp duty rebates. Collectively, these factors repositioned homeownership as a symbol of financial security and future stability. Additionally, sustained economic growth has reinforced buyer confidence, contributing to continued resilience and activity within the residential real estate sector.'
Apartments remain the preferred residential choice across generations and income groups, though higher-income buyers showed a stronger preference for independent houses and villas, indicating a desire for space, privacy, and premium living. A significant portion of the respondents across the country (37%) were looking to purchase a home to upgrade to a better living space, while nearly a third (32%) wanted to buy a house for the first time for end-use.
Factors like location, affordability, and developer reputation continue to hold significance, while lifestyle amenities and financing options were also noted to be increasingly influential in buyer preferences. Seamless and easy access to common amenities remained high on the list of priorities for prospective Indian homebuyers. More than half (58%) preferred their new homes to be closer to health facilities, while a similar number (53%) indicated a preference for shopping outlets. Public transport access was also a prominent factor in the decision-making process of most buyers, with 40% of respondents indicating it to be something they sought while selecting a home.
Features such as fitness centres (16%) and community clubs (23%) ranked much lower in the priority of homebuyers, with most expecting them to be a standard feature in modern housing projects. This indicated a growing shift amongst new-age homebuyers toward more informed and strategic decision-making, balancing financial viability, convenience, and long-term value.
Frequently Asked Questions
What percentage of Indians prioritize homeownership according to the study?
According to the study by Knight Frank India, 80% of Indians prioritize homeownership.
Which cities show the strongest sentiment for homeownership?
Chennai (86%), Ahmedabad (83%), and the Mumbai Metropolitan Region (85%) show the strongest sentiment for homeownership.
What factors contribute to the strong sentiment for homeownership in these cities?
The strong sentiment for homeownership in these cities is driven by rising disposable incomes, improved financial stability, and strong cultural preferences for owning property.
Which demographic groups show the highest homeownership sentiment?
High earners with annual incomes above ₹5 million (91%) and millennials (82%) show the highest homeownership sentiment.
What are the key factors influencing homebuyer preferences?
Key factors influencing homebuyer preferences include location, affordability, developer reputation, access to health facilities, shopping outlets, and public transport.
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