 "Most urban Indians aspire to own homes, prefer home loans: Report")
Most urban Indians want to own their own homes and loans are most preferred by all income groups to make such a purchase, according to a Business Standard-Knight Frank report released on Thursday.
Customers expect banks and financial institutions to provide competitive interest rates, flexible loan tenures and quick approval processes, said the survey that had 1,629 urban homebuyers as respondents. As many as 79 per cent of the respondents said they prefer taking a home loan.
“Our latest survey highlights this continued preference for homeownership, with 80 per cent of respondents aspiring to own homes and a growing trend toward premium properties, particularly in urban areas," said Shishir Baijal, chairman and managing director of Knight Frank India. The report was released at the Business Standard BFSI Summit 2024 in Mumbai.
Baijal anticipated "a resilient real estate landscape that aligns with India’s broader development goals as the banking, financial services, and insurance sector facilitates this growth – offering home loans, investment avenues, and risk management tools – combined with emerging technologies and infrastructure advancements."
As many as 50 per cent of respondents said location is the top criteria to purchase a property. Size and layout, affordability, builder's reputation, proximity to workplace, amenities, financing options, and future resale value are other crucial factors.
Reasons for purchasing a home vary for different generations. "Millennials (39 per cent) and Gen Z (36 per cent) are leading the trend of upgrading and purchasing for end-use, while baby boomers display a stronger interest in investments (29 per cent) and retirement plans (15 per cent)."
As many as 80 per cent of respondents said they preferred owning a home, 19 per cent opted renting and the rest were unsure.
According to the report 52 per cent of the respondents prefer apartments, followed by studio apartments at 19 per cent, and independent houses or villas at 17 per cent. "Notably, gated communities and plots of land are less popular, chosen by only 7 per cent and 5 per cent of respondents, respectively."