80% Indians Aim to Own Homes - Here's What Data Says

Key Highlights

• 80 percent of Indians prioritize homeownership, with top sentiment in Chennai, Ahmedabad, and MMR.
• Millennials and high-income earners drive strong homebuying intent across urban India.
• Knight Frank India report reveals rising demand for homes post-pandemic amid economic stability and policy support.

According to a study conducted by Knight Frank India, 80 percent of Indians believe homeownership is essential to their lives, with the most robust purchase sentiment recorded in Chennai (86 percent), Ahmedabad (83 percent), and the Mumbai Metropolitan Region (85 percent). This reflects an increase in disposable wealth, improved financial stability, and cultural mores in favour of owning residential property.

The subsequent two markets, which reflected lower purchase sentiment, were Delhi-NCR (74 percent) and Bengaluru (73 percent) (due to higher property prices) and in part by young and migrant professionals needing to rent initially and are unable to afford home purchase now.

The study ‘Beyond Bricks: The Pulse of Home Buying’ found that 80 percent of the respondent sample had positive purchase sentiment nationally.

The report mapped various trends within India’s residential real estate space and noted that a significantly higher percentage of Indians had expectations to own their home (80 percent) in future homeownership. The intent to own was highest amongst higher income earners (91 percent) who earn over Rs. 5 million per year, and younger millennials (82 percent).

The purchase sentiment was stronger in metropolitan areas, which included Chennai (86 percent), Ahmedabad (83 percent), and Mumbai Metropolitan Region (85 percent), financial stability, practicing lower spending habits, and cultural sentiment formed part of the reasons for purchase.

Other metros, like Kolkata (80 percent) and Hyderabad (81 percent), showed high ownership preference partly because of the desire for long-term security. The two markets that, in comparison, manifested lower ownership preference were Delhi-NCR (74 percent) and Bengaluru (73 percent). This was due to higher property prices and other factors that also attracted young, migrant professionals inclined to rent instead of own, according to the study.

In terms of demographics, positive purchase sentiment was most strongly propelled by high income earners above Rs. 5 million annually (91 percent) and millennials (82 percent) due to their higher disposable wealth and greater sense of financial security.

Individuals representing Generation Z (71 percent) and lower income demographics of less than Rs. 1 million annually (72 percent) showed lower home ownership sentiment due to affordability limitations, desire for lifestyle flexibility and mobility at the beginning of their working careers. This indicated an emerging market for affordable financing and first housing option solutions that consider the specific needs of the various consumer demographics, it said.

 “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 rates and buyer-centric incentives such as stamp duty rebates. Collectively, these factors repositioned homeownership as a symbol of financial security and future stability. Additionally, sustained economic growth has reinforced buyer confidence, contributing to continued resilience and activity within the residential real estate sector,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.