A recent survey reveals urban Indians’ growing awareness in real estate, showing distinct choices based on property type, purpose, and financial preferences.

In today’s evolving real estate market, Indian homebuyers are more informed and selective about their property choices. A recent survey by Knight Frank India, titled “Banking on BRICS,” sheds light on the preferences of 1,629 urban homebuyers, exploring their preferred property types, ownership or rental choices, and influencing factors in the decision-making process.

The Property Type Preference: Apartments Lead the Way

According to the survey, apartments emerge as the top choice for 52% of respondents, followed by studio apartments, favored by 19%. Independent houses or villas come next, with 17% choosing them. Gated communities are preferred by only 7%, and plots or land appear the least popular, with just 5% of homebuyers expressing interest.

Ownership vs. Renting: Ownership is King

Homeownership remains a priority, with 80% of the survey respondents choosing to buy their own homes, while only 19% are comfortable with renting. Interestingly, these preferences are consistent across generations: 79% of Baby Boomers, 80% of Gen X, and 82% of Millennials prefer homeownership. Gen Z shows a different trend, with 71% favoring ownership and a significant 27% opting to rent.

Why Buy? Motivations Vary by Age and Generation

Generational factors also play a role in why people choose to buy property. Baby Boomers (ages 57-75) are inclined toward investing in property, while Millennials (ages 25-40) show a preference for upgrading their living spaces. Specifically, 39% of Millennials and 36% of Gen Z buy property primarily for personal use, while 29% of Baby Boomers consider it an investment and 15% view it as a part of their retirement plan.

Overall, 37% of surveyed homebuyers are upgrading to better homes, reflecting an inclination towards mid-range and luxury properties. Additionally, 32% are first-time buyers purchasing for personal use, 25% are investing, and 7% are buying for retirement, as a secondary residence, or as a vacation home.

Factors Influencing Homebuyer Decisions: Location Reigns Supreme

Various factors influence homebuying decisions, with location being the most critical, valued by 50% of respondents. Another 45% prioritize property size, affordability, and price. Meanwhile, 35% consider the developer’s reputation essential, and 33% prefer properties closer to their workplaces. Project amenities matter for 32% of buyers, while 29% are influenced by financing options. Only 22% place resale value as a deciding factor.

Financing Preferences: Home Loans Remain a Top Choice

The survey reveals that 79% of homebuyers opt for a home loan or mortgage to finance their purchase. About 9% rely on family support, while 12% use personal investments and savings to buy property. Shishir Baijal, Chairman and MD of Knight Frank India, highlights this trend, stating, “India’s real estate sector not only plays a crucial role in economic growth, GDP, and employment, but it also reflects buyers’ evolving preferences and financial support systems. Our recent survey underscores the priority for homeownership, with 80% of respondents keen on purchasing homes and showing a shift towards premium properties, particularly in urban areas.”

Baijal also notes that advancements in the BFSI sector, coupled with emerging technologies and infrastructure improvements, are creating a flexible real estate landscape aligned with India’s broader developmental goals.