Millennials and Gen Z: Shaping India’s Housing Market by 2030

A dynamic shift is underway, heralding a new era in homeownership. By 2030, Millennials and Gen Z are projected to dominate the housing landscape, comprising nearly 60% of new homebuyers, according to the latest year-end residential market note by global real estate services firm JLL.

The Rise of Millennials and Gen Z in Homeownership

Millennials, born between the early 1980s and early 2000s, and Gen Z, born between the mid-1990s and early 2010s, are transforming the housing market with their preferences for urban lifestyles, tech-enabled homes, and sustainable living spaces.

This shift aligns with an anticipated rise in urban homeownership, set to increase from 65% in 2020 to a remarkable 72% by 2025, supported by affordable financing options and a younger demographic entering the market.

Emerging Growth Hubs in Tier II and III Cities

The housing sector is undergoing a profound transformation fueled by rapid urbanization and technological innovations. Smaller urban centers like Jaipur, Indore, and Kochi are at the forefront, contributing to over 40% of new housing developments by 2025. These cities are pivotal in driving housing growth, reflecting a broader shift toward regional diversification.

Sustainability Takes Center Stage

Once a luxury, sustainability is now a critical driver in the housing market. Green-certified buildings, such as those with LEED certifications, are expected to account for 30% of new residential projects by 2025—double the 2020 figure. This trend underscores the rising importance of eco-friendly living, smart homes, and tech-integrated spaces in shaping buyer preferences.

Resilience of India’s Real Estate Sector

India’s housing market is poised to contribute 13% to the national GDP by 2025, reflecting its resilience and potential for sustained growth. In 2024 alone, residential unit sales soared by 17% compared to 2023, with total units sold reaching an impressive 85% of the previous year’s total sales. This growth trajectory cements the housing sector's position as a key driver of the nation’s economy.

A Vision for 2030

By 2030, the housing sector is projected to become a $1-trillion market, driven by demographic shifts, policy reforms, and the rising demand for sustainable and tech-savvy homes. Affordable housing initiatives are also gaining momentum, ensuring accessibility for diverse income groups.

Key Takeaways

• Millennials and Gen Z will dominate homeownership by 2030.
• Tier II and III cities like Jaipur, Indore, and Kochi are emerging as growth hubs.
• Sustainability is transforming the housing market, with green-certified projects gaining prominence.
• The sector is on track to become a $1-trillion market, contributing 13% to India’s GDP by 2025.