A recent study by Business Standard and Knight Frank found that a significant majority of urban Indians aspire to own their homes, with individuals across all income brackets favouring home loans as the primary means to facilitate such purchases.
The survey, which included responses from 1,629 urban homebuyers, revealed that customers anticipate banks and financial institutions to offer competitive interest rates, adaptable loan tenures, and expedited approval processes. Notably, 79 percent of the participants expressed a preference for securing a home loan.
“Our latest survey highlights this continued preference for homeownership, with 80 per cent of respondents aspiring to own homes and a growing trend toward premium properties, particularly in urban areas,” said Shishir Baijal, chairman and managing director of Knight Frank India. The report was released at the Business Standard BFSI Summit 2024 in Mumbai.
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Baijal envisioned a robust real estate environment that corresponds with India’s overarching development objectives, as the banking, financial services, and insurance sectors support this expansion by providing home loans, investment opportunities, and risk management solutions, alongside the integration of emerging technologies and improvements in infrastructure.
A significant 50 percent of participants indicated that location is the primary factor influencing their decision to purchase a property. Other important considerations include size and layout, affordability, the reputation of the builder, proximity to the workplace, available amenities, financing options, and potential resale value.
The motivations for home purchases differ across generations. Millennials (39 percent) and Generation Z (36 percent) are at the forefront of the trend towards upgrading and buying homes for personal use, whereas baby boomers show a greater inclination towards investment opportunities (29 percent) and retirement planning (15 percent).
Furthermore, 80 percent of respondents expressed a preference for homeownership, while 19 percent chose renting, and the remaining individuals were uncertain about their choice.
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The report shows that 52 percent of respondents favour apartments, while studio apartments are preferred by 19 percent, and independent houses or villas by 17 percent. It is noteworthy that gated communities and plots of land are less favored, with only 7 percent and 5 percent of respondents selecting these options, respectively.
