Mumbai: As Baby Boomers, Gen X and millennials prefer to buy homes in India, Gen Z shows a notable difference and lean towards renting a place, according to a report on Thursday. 
Baby boomers favour investments but millennials prefer to upgrade their property and the reasons for purchasing a home show distinct generational difference, according to a Knight Frank report.
About 79% of Baby Boomers, 80% of Gen X and 82% of Millennials favour homeownership, while among Gen Z, only 71% prefer to own a home with a high 27% leaning towards renting.
Millennials (39%) and Gen Z (36%) are leading the trend of upgrading and purchasing for end-use, while Baby Boomers display a stronger interest in investments (29%) and retirement plans (15%).
Overall, 37% of respondents are upgrading to a better home, reflecting a growing shift towards mid-range and luxury housing which was traditionally concentrated in select cities but is now expanding to Tier 1 cities in India.
The remaining 32% are first-time homebuyers for end-use, 25% are investing and 7% cite other reasons, such as retirement or acquiring a second home or vacation home, the report mentioned.
The report further revealed that 52% prefer apartments, followed by studio apartments at 19% and independent houses or villas at 17%.
In terms of financing, about 79% of respondents indicated home loans as their preferred mode for purchasing a home.
Overall, 80% of respondents expressed preference for owning a home, with only 19% opting for renting and a mere 1% remaining uncertain.
According to Shishir Baijal, Chairman and Managing Director, Knight Frank India, they anticipate a resilient real estate landscape that aligns with India&rsquo;s broader development goals.
Location stands out as a priority and is the determining factor for 50% of respondents, affirming its timeless importance in real estate.
The builder&rsquo;s reputation (35%) and proximity to the workplace (33%) play an important role, reflecting a strong demand for reliability and convenience &mdash; key factors that enhance buyer confidence in their long-term investment.
&nbsp;
&mdash;IANS
&nbsp;
&nbsp;

Only 17% Gen Z respondents in the report preferred independent homes or villas

Over 27% respondents in survey favoured paying rent to purchasing property

India’s Gen Z prefers renting than owning a home: Report

Over 27% respondents in survey favoured paying rent to purchasing property

November 7, 2024 | 17:24 IST