Home-buying sentiment strengthens in south and west India, says Knight Frank survey

Financial stability, amenities drive India's home purchase boom: Chennai, MMR, Ahmedabad lead in purchase intent

A pan-India homebuyer sentiment survey by Knight Frank has shown strong purchasing intent in southern and western cities, led by Chennai (86 percent), Mumbai Metropolitan Region (85 percent), and Ahmedabad (83 percent). Homebuyers in Delhi-NCR showed significant interest in under-construction properties, while those in Bengaluru remained investment-focused.

The study found that access to health and educational amenities ranked high among decision-making factors. Kolkata (80 percent) and Hyderabad (81 percent) also saw robust purchase intent, driven by long-term security considerations.

The survey, which covered 1,629 Indian urban homebuyers across the top eight Tier-1 cities, also noted that millennials and high-income professionals are the most proactive buyers, aided by financial stability, improved home loan terms, and a desire for future-ready housing. Conversely, Gen Z and lower-income buyers demonstrated relatively lower ownership preference, highlighting the need for affordable housing and accessible financing.

The top eight Tier 1 Indian cities, which were part of the survey “Beyond Bricks: The Pulse of Home Buying” include — Mumbai Metropolitan Region (MMR), Delhi NCR, Bengaluru, Chennai, Hyderabad, Kolkata, Pune and Ahmedabad.

Homeownership ambitions

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The report, which was released earlier this week, noted that a significant majority (80 percent) of surveyed Indians still hold strong homeownership ambitions and financial stability, amenities and a lifestyle upgrade remain key drivers of India's home purchase boom.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said that homeownership has emerged as a robust and enduring trend, particularly in the post-pandemic period, resulting in a marked increase in residential demand.

“This momentum was further supported by proactive measures undertaken by regulatory authorities, including extended reductions in repo rate and buyer-centric incentives such as stamp duty rebates. Collectively, these factors repositioned homeownership as a symbol of financial security and future stability,” he said.

The buying factors

Apartments remained the most preferred residential choice across generations and income groups, though higher-income buyers showed a stronger preference for independent houses and villas, indicating a desire for space, privacy, and premium living.

Public transport access was also a prominent factor in the decision-making process of most buyers, with 40 percent of respondents indicating it to be something they sought while selecting a home. Somewhat surprisingly, features such as fitness centres (16 percent) and community clubs (23 percent) ranked much lower in the priority of homebuyers, with most expecting them to be a standard feature in modern housing projects, the survey findings showed.

Ajjay Parge, Founder, Qubit India, a prop-tech platform, said that the record-setting sale of approximately 3.03 lakh residential units across major Indian cities in 2024 highlights a growing trend of home buying.

“Interestingly, despite property prices rising 4-6 percent annually, demand remains robust, especially for premium homes above Rs 1 crore, which saw around 10 percent year-on-year growth. Clearly, evolving lifestyles and increased financial capacity among younger buyers are driving India's residential market towards future-ready living,” he said.