Gen Z will lead the preference towards purchasing property in the next two years in India compared to 29 percent of baby boomers, according to a study by real estate consultancy CBRE.
While Gen Z is defined as the age group between 18 and 25 years, late millennials belong to the 26-33 years group. Baby boomers, or people born during the mid-20th century baby boom, belong to ages above 58 years.
About 70 percent of millennial respondents preferred to buy over rent, the report said.
Cities like Delhi- NCR, Mumbai, Bengaluru and Pune are witnessing the emergence of growing suburbs while re-defining the city centre, said the report titled ‘Voices from India: How will people live, work and shop in the future?’.
The report that polled 20,000 people globally found that respondents display a stronger intention to move to a new home in the next two years, a 13 percent increase from the last two years.
The preferences
Approximately 45 percent of respondents to the survey in India intend to move into a new home in the next 2 years, which is significantly higher compared to global and APAC.
About 52 percent of respondents said they are willing to move for better quality properties and surroundings. Additionally, among those planning to move, more than 70 percent wanted to buy a house, instead of renting.
“While a majority of the respondents intend to purchase a house, we should not discount the remaining cohort looking for rental accommodation – 40 percent of Gen Z would prefer to rent rather than purchase. While 20 percent of Gen Z would prefer private rental accommodation, 17 percent look at student housing and shared accommodation as an option. Since this is the age group that will drive rental accommodation, developers must outline strategies to understand and tap demand well in time," Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE, said.
City centres sought after
According to the LIVE section of the India report, in contrast to the widely held belief that most people are seeking to move out of urban areas as flexibility at the workplace emerges as a dominant theme, areas close to the city centres remain the most sought after among those planning to move.
Among the respondents, about 49 percent of people chose to stay close to the city centre and 35 percent agreed to move to remote areas.
Preference for working in an office under the pure hybrid working model is likely to increase from the current 67 percent to 78 percent in India – in line with global and APAC trends, the report found.
“Further, families are now laying equal emphasis on a property’s quality and surroundings as on the unit itself. Therefore, attractive and thoughtful interior designs, well-planned outdoor areas and surroundings must now be complemented with remote working infrastructure," Magazine added.
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