Homeownership remains the dominant choice across India, with 80% of respondents preferring to own a home, while 19% opt for renting. Chennai (86%), Ahmedabad (83%), and MMR (85%) exhibit the highest inclination toward ownership, driven by financial stability and cultural preferences. Kolkata (80%) and Hyderabad (81%) also reflect a strong preference for owning, highlighting aspirations for long-term security. In contrast, Bengaluru (73%) and NCR (74%) show comparatively lower ownership sentiment, influenced by high property prices and a significant influx of young professionals and a migrant population that favors rental accommodations.
Though there is a clear preference for homeownership across Indian cities, a significant portion of this sentiment is driven by future intent, with 34% of individuals currently renting but planning to transition into homeownership. Cities like Bengaluru (36%), NCR (37%), and Pune (36%) present substantial opportunities for developers and financial institutions to tap into this latent demand, indicating potential for targeted offerings such as flexible financing solutions.
Additionally, with 46% of respondents already owning a home, the growing trend of upgrades and second-home purchases presents another emerging opportunity. Understanding the motivations and financial readiness of aspiring buyers will be essential for stakeholders to create tailored products and services that facilitate the journey from renting to owning, fostering long-term growth in the housing market, as per Knight Frank survey findings.
Millennials lead in homeownership sentiment, with 82% expressing a preference to own, reflecting their growing financial stability and desire for long-term security. Gen X follows closely at 80%, while Baby Boomers also maintain a strong preference at 79%, reflecting their tendency to prioritize settled living arrangements. On the other hand, Gen Z lags at 71% likely due to financial constraints, lifestyle flexibility, and greater career mobility.
Income levels further influence homeownership sentiment, with a clear correlation between higher earnings and ownership preference. Among respondents earning above INR 5 mn, a dominant 91% prefer homeownership, often viewing property as both a residence and a wealth-building asset. Similarly, 89% of those earning between INR 1 to 5 mn prioritize ownership, signaling strong financial confidence within the mid-income segment. However, respondents earning below INR 1 mn exhibit lower numbers with 72% favouring ownership and 27% opting to rent, indicating the influence of affordability on decision-making.
Overall, the data underscores the enduring appeal of homeownership as both a financial asset and an emotional investment across Indian cities.
Across the top 8 cities, the key reasons for buying a home vary significantly, reflecting diverse priorities among different demographics. Overall, upgrading to a better home is the leading driver for 37% of homebuyers, followed by first-time purchases for end-use at 32%. Investment remains a strong motivator, accounting for 25% of purchases, while 7% cite other reasons such as retirement planning or acquiring a second home.
Upgrading to a better home is a significant driver in Pune (55%), MMR (48%), and Kolkata (40%). First-time homebuyers dominate in Ahmedabad (48%), NCR (42%), and Chennai (51%). Bengaluru leads in investment-driven purchases, with 40% of buyers viewing real estate as a financial asset, followed by MMR (34%) and Hyderabad (27%). Additionally, a small but notable share of buyers in Hyderabad (11%) and Bengaluru (11%) purchase properties for other reasons, such as retirement or acquiring second homes.
