Urban Indian Home Buyers Prefer Apartments and Homeownership: Knight Frank Survey
A recent survey by Knight Frank, titled 'Banking on Bricks' and involving 1,629 respondents, highlights key trends in urban Indian homebuyer preferences, with a strong inclination towards apartments and homeownership.
HomeownershipApartmentsReal EstateIndian HomebuyersUrban PreferencesReal Estate MaharashtraNov 07, 2024
Homeownership remains a strong preference across all generations, with 80% of respondents aspiring to own a home. Only 19% prefer renting, and 1% remain uncertain. This trend is consistent across different age groups 79% of Baby Boomers, 80% of Gen X, and 82% of Millennials favor homeownership. However, Gen Z shows a higher tendency towards renting, with 27% preferring this option.
The reasons for purchasing a home vary by generation. Millennials (39%) and Gen Z (36%) are leading the trend in upgrading and purchasing for end-use. Baby Boomers, on the other hand, show a stronger interest in investments (29%) and retirement plans (15%). Overall, 37% of respondents are upgrading to a better home, reflecting a shift towards mid-range and luxury housing, particularly in Tier 1 cities. Additionally, 32% are first-time homebuyers for end-use, 25% are investing, and 7% cite other reasons such as retirement or acquiring a second home.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, commented, 'India's real estate sector is not only pivotal to our economic growth, contributing significantly to GDP and employment, but also reflects evolving buyer preferences and financial support systems. Our latest survey highlights this continued preference for homeownership, with 80% of respondents aspiring to own homes and a growing trend toward premium properties, particularly in urban areas. As the BFSI sector facilitates this growth—offering home loans, investment avenues, and risk management tools—combined with emerging technologies and infrastructure advancements, we anticipate a resilient real estate landscape that aligns with India’s broader development goals.'
Location remains a top priority for 50% of respondents, underscoring its importance in real estate decisions. Property size and layout (45%), along with price and affordability (45%), are equally significant. Homebuyers seek value for their money while meeting lifestyle needs. The builder’s reputation (35%) and proximity to the workplace (33%) also play crucial roles, highlighting the demand for reliability and convenience. Amenities are becoming increasingly important, with 32% of buyers looking for integrated facilities such as gyms, parks, and co-working spaces.
The preferred mode of financing across all income groups is home loans, with 79% of respondents relying on this option. There is variation among affluent homebuyers, with 83% of households earning between Rs 1 million to Rs 5 million preferring home loans. In contrast, wealthier individuals with household incomes above Rs 5 million show a higher inclination (19%) to use personal savings or liquidate investments compared to 11% in the lower income group.
Homebuyers' expectations from banks and financial institutions during the homebuying process include competitive interest rates (74%), flexible loan tenures (48%), and a quick loan approval process (38%). Guidance on legal and documentation aspects is important for 25% of respondents, and 15% value home insurance options.
Frequently Asked Questions
What is the 'Banking on Bricks' survey?
The 'Banking on Bricks' survey is a recent study conducted by Knight Frank involving 1,629 respondents to understand the preferences and trends of urban Indian homebuyers.
What is the most preferred type of housing among urban Indian homebuyers?
According to the survey, apartments are the most preferred type of housing among urban Indian homebuyers, with 52% of respondents favoring them.
What percentage of respondents prefer homeownership over renting?
80% of respondents prefer homeownership, while only 19% prefer renting and 1% remain uncertain.
What are the key factors influencing homebuyer decisions?
The key factors influencing homebuyer decisions include location (50%), property size and layout (45%), price and affordability (45%), builder's reputation (35%), and proximity to the workplace (33%).
What is the preferred mode of financing for homebuyers?
Home loans are the preferred mode of financing for 79% of respondents, with variations among different income groups.
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