Gen Z—the demographic between 21-28 years of age—is reshaping India’s real estate market. Recent data indicates that they’re purchasing homes five to six years earlier than Millennials (aged 29-43) did, often relying on home loans to make it happen. A survey by Knight Frank India found that over 36% of Gen Z in urban areas are considering buying a home, the highest percentage across all age groups.
Gen Z and Millennials dominated over 60% of property transactions on NoBroker’s platform in Bengaluru in early 2024, signaling a growing interest in property ownership in major cities.
Data from Magicbricks highlights that Millennials and Gen Z collectively made up 53% of India’s home loan applications by October 2023, indicating a strong reliance on credit to secure properties.
According to Nimesh Bhandari, business head of home loans at Magicbricks, favorable loan rates are attracting younger buyers. A steady repo rate has made real estate an appealing asset, motivating this demographic to invest in homes rather than rent.
Additionally, Knight Frank’s research shows that while most prospective homebuyers earning between ₹1 crore and ₹5 crore prefer loans, those in higher income brackets are more likely to use personal savings or liquidate assets. This indicates a growing blend of traditional and modern financing methods among Gen Z and affluent buyers.
The survey also pointed out a rising interest in property ownership across generations, including Baby Boomers (69-79 years old) and Gen X (44-59 years old), who favor home ownership by around 80%. Surprisingly, 71% of Gen Z respondents favor buying over renting, showing a marked interest in stability and ownership. Among Millennials, that number jumps to 82%.
Shishir Baijal, chairman and managing director of Knight Frank India, notes that 80% of survey respondents aspire to own a home, with urban areas seeing a shift towards premium properties. The Banking, Financial Services, and Insurance (BFSI) sector, along with technology and infrastructure improvements, are anticipated to support this resilient real estate trend as India aligns its housing market with its development goals.
In summary, India’s Gen Z buyers are reshaping the market with an earlier-than-expected entry into homeownership, enabled by accessible loan options and a preference for stable investments in property. With a growing urban population and financial sector support, the real estate sector seems poised for continued growth.