Homeownership Drives Indian Real Estate: Chennai, MMR, Ahmedabad Lead Sentiment

The Indian Homeownership Dream

Homeownership remains a powerful aspiration for most Indians. According to a recent study by Knight Frank India, 80% of Indians prioritize owning a home. This sentiment is especially strong in Chennai (86%), Ahmedabad (83%), and the Mumbai Metropolitan Region (85%). The surge is fueled by rising disposable incomes, improved financial security, and deep-rooted cultural preferences for property ownership.

Regional Trends: Leaders and Laggards

While the homeownership desire is robust across the nation, some regions lag behind. Delhi-NCR (74%) and Bengaluru (73%) show slightly lower purchase sentiment. This is attributed to higher property prices and a larger population of young, migrant professionals who tend to prefer renting over buying. Nevertheless, the ambition to own a home remains strong even in these markets, reflecting the evolving dynamics of urban India.

Demographics: Who’s Leading the Charge?

The study, Beyond Bricks: The Pulse of Home Buying, highlights that high earners with annual incomes above ₹5 million (91%) and millennials (82%) are the most enthusiastic about homeownership. In contrast, Gen Z (71%) and those earning less than ₹1 million annually (72%) show relatively lower sentiment, often due to affordability constraints and a preference for lifestyle flexibility. This points to a growing need for accessible financing and entry-level housing options.

What Indian Homebuyers Want

Apartments are the most preferred residential choice across all generations and income groups. However, higher-income buyers show a growing preference for independent houses and villas, seeking more space, privacy, and premium living. The survey found that:

• 37% of respondents wish to upgrade to better living spaces
• 32% are first-time buyers seeking homes for end-use

Location and convenience play a crucial role in the decision-making process. Over half (58%) of buyers prefer homes close to health facilities, 53% favor proximity to shopping outlets, and 40% value easy access to public transport. Amenities like fitness centers and community clubs are now considered standard features in modern housing projects.

Market Momentum in the Post-Pandemic Era

The desire for homeownership has only strengthened in the post-pandemic period. Regulatory measures such as reduced repo rates and buyer incentives like stamp duty rebates have further boosted the market. As Shishir Baijal, Chairman and Managing Director of Knight Frank India, notes, these factors have repositioned homeownership as a symbol of financial security and future stability. Sustained economic growth continues to reinforce buyer confidence, ensuring ongoing resilience and activity in the residential real estate sector.