A recent study by Knight Frank India, titled “Beyond Bricks: The Pulse of Home Buying,” reveals that 80% of Indians prioritize homeownership, with the highest purchase sentiment recorded in cities like Chennai (86%), Ahmedabad (83%), and the Mumbai Metropolitan Region (85%). The trend is driven by rising disposable incomes, a more secure financial outlook, and the deeply ingrained cultural preference for owning a home. However, challenges such as high property prices and the increasing popularity of rental accommodations among young professionals in certain metro areas like Delhi-NCR (74%) and Bengaluru (73%) have also impacted homeownership trends.
This report provides a comprehensive overview of residential real estate preferences, highlighting that across India, people are increasingly focused on owning a home as a long-term financial and security goal.
Key Findings from Knight Frank India’s Homebuyer Survey
1. Strong Homeownership Sentiment Across India
- 80% of Indians have a positive sentiment towards buying a home, indicating strong demand for residential properties.
- Chennai, Ahmedabad, and MMR lead with some of the highest percentages of prospective homebuyers, driven by better financial stability and cultural factors.
2. Demographic Breakdown: High Earners and Millennials Lead the Charge
- 91% of high earners (annual income above ₹5 million) and 82% of millennials are most likely to prioritize homeownership.
- On the other hand, younger generations such as Gen Z (71%) and those earning less than ₹1 million annually (72%) show comparatively lower sentiments due to affordability issues and lifestyle flexibility.
3. Regional Differences in Homeownership Preferences
- Delhi-NCR (74%) and Bengaluru (73%) exhibit lower purchase sentiments. This is attributed to the high cost of properties and the influx of younger professionals, who often prefer renting homes for mobility.
- Cities like Kolkata (80%) and Hyderabad (81%) also display strong homeownership preferences, with residents looking for long-term security.
4. Preference for Apartments and Premium Homes
- Apartments remain the most popular choice across all age groups and income levels. However, higher-income buyers show a growing preference for independent houses or villas, indicating a desire for more space and privacy.
5. Buyers’ Priorities: Location, Amenities, and Affordability
- 58% of buyers prefer homes located near health facilities, while 53% look for proximity to shopping outlets.
- Public transport access is another key factor, with 40% of respondents emphasizing this in their decision-making process.
- Fitness centres (16%) and community clubs (23%) ranked lower on the priority list, suggesting that buyers are more focused on basic needs like location and healthcare.
Summary Table of Key Facts:
| Fact | Details |
|---|---|
| Overall Homeownership Sentiment | 80% of respondents have a positive sentiment towards owning a home. |
| Top Regions for Homeownership | Chennai (86%), Ahmedabad (83%), MMR (85%) |
| Lagging Regions | Delhi-NCR (74%), Bengaluru (73%) |
| High Earners Homeownership Sentiment | 91% of those with an income above ₹5 million |
| Millennials’ Sentiment | 82% of millennials prefer owning a home |
| Preferences for Property Type | Apartments are the most popular; high earners prefer villas. |
| Most Desired Features | Proximity to health facilities (58%), public transport access (40%) |
Quotes from Experts:
- Shishir Baijal, Chairman and Managing Director, Knight Frank India, highlighted that “Homeownership has emerged as a robust and enduring trend, particularly in the post-pandemic period, resulting in a marked increase in residential demand.”
- Baijal also pointed to “proactive measures undertaken by regulatory authorities, including extended reductions in repo rates and buyer-centric incentives,” which have further supported this upward trend in homeownership sentiment.
FAQs
1. Why do Chennai, Ahmedabad, and MMR show stronger homeownership sentiments?
These regions are seeing a surge in homeownership due to rising disposable incomes, improved financial stability, and the strong cultural preference for owning property.
2. What factors are driving the 80% homeownership sentiment across India?
Key factors include economic growth, government incentives, cultural preferences, and rising disposable incomes, making homeownership a desirable long-term investment.
3. Why are Delhi-NCR and Bengaluru lagging in homeownership sentiment?
High property prices and the influx of young, migrant professionals, who tend to favor renting over ownership, are the primary reasons for the relatively lower homeownership sentiment in these cities.
4. What types of homes are most preferred by buyers?
Apartments remain the most popular choice, though higher-income buyers are increasingly leaning towards independent houses and villas for more space and privacy.
5. How important are location and amenities to homebuyers?
Location remains the most important factor, with buyers preferring homes close to health facilities, shopping outlets, and public transport, while amenities like fitness centres and community clubs rank lower.