Rising Preference for Homeownership Among Millennials
A recent survey by property consultant Savills India highlights a significant shift in India’s residential real estate market. Millennials (born between 1981 and 1996) are increasingly drawn towards owning their own homes, preferring to pay EMIs rather than remain caught in the high-cost rental cycle. This marks a turning point as younger buyers begin to view real estate as a stable, long-term investment that can offer both financial security and personal freedom.
Ideal Price Brackets: Homes Under ₹2 Crore Top the Charts
The data, collected from over 450 respondents across more than 35 cities, shows a clear trend in home budgets. Approximately 54% of prospective buyers in Tier 1 cities seek properties priced at or below ₹2 crore, while another 32% have a budget between ₹2.1 crore and ₹4 crore. These figures underscore a growing demand for mid-range homes that promise affordability without sacrificing quality or location advantages.
Generational Differences in Housing Preferences
While millennials gravitate towards cost-efficient homeownership, older generations like Gen X (1965-1980) and earlier cohorts prioritize spaciousness and premium amenities. As age increases, respondents place greater emphasis on improved living conditions, signaling that while price remains pivotal for younger buyers, comfort and luxury become increasingly important for older ones. Factors such as the desire for larger floor plans, enhanced facilities, and a strong work-from-home environment align more with buyers aged 42-65.
Interest from Tier 2 and 3 Buyers in Tier 1 Markets
The survey also revealed that 46% of prospective buyers from Tier 2 and Tier 3 cities are actively looking to purchase homes under ₹2 crore in Tier 1 locations. This migration indicates that aspirational homebuyers from smaller cities value metropolitan areas for better infrastructure, career opportunities, and quality of life. Such moves further bolster the mid-range housing segment, as these buyers focus on end-use properties rather than pure investment.
Accelerated Buying Timelines Reflect Urgency
Over two-thirds of respondents expressed a desire to buy a home within the next 12 months. This urgency is driven by multiple factors: downsizing post-retirement, maximizing capital gains, and ensuring a nurturing environment for children. The push to finalize purchases swiftly shows that many individuals are eager to secure their living arrangements, aligning with current market conditions that favor well-located, moderately priced properties.
Smart Homes, WFH Spaces, and Childcare: Changing Amenity Landscape
When it comes to amenities, preferences vary notably by age. Buyers aged 42-65 show a strong inclination (65%) for smart homes featuring advanced technologies. More than half within this age group also prioritize dedicated work-from-home areas, reflecting the lasting impact of remote work trends. For the 26-41 demographic, childcare facilities and integrated smart home solutions rank highly, reflecting a desire for family-friendly living spaces that balance convenience and comfort.
Sustainability and Future-Ready Features on the Rise
Across age groups, there is growing interest in sustainability and EV (electric vehicle) readiness. About 32-42% of potential buyers want EV charging stations in their residential complexes, signaling a shift towards greener mobility and environmentally conscious living. This interest in sustainable infrastructure aligns with broader global trends, suggesting that Indian homebuyers are increasingly future-focused.
Outlook: A Market Poised for Innovation and Growth
As the economy stabilizes and incomes rise, developers are expected to adapt quickly to these evolving consumer demands. The emphasis on affordability, technology, and family-oriented amenities will guide project planning. By catering to diverse age groups and preferences—ranging from financial considerations to eco-friendly features—India’s residential sector is set to experience sustained growth and continuous innovation.