According to the Knight Frank report, in terms of financing, about 79% of respondents indicated home loans as their preferred mode for purchasing a home.
A survey of 1,629 Indian urban homebuyers revealed that 52% prefer apartments, followed by studio apartments at 19%, and independent houses or villas at 17%. Notably, gated communities and plots of land are less popular, chosen by only 7% and 5% of respondents, respectively.
Overall, 37% of respondents are upgrading to a better home reflecting a growing shift towards mid-range and luxury housing which was traditionally concentrated in select cities but is now expanding to Tier 1 cities in India. The remaining 32% are first-time homebuyers for end-use, 25% are investing, and 7% cite other reasons, such as retirement or acquiring a second home or vacation home.
Location stands out as a priority and is the determining factor for 50% of respondents, affirming its timeless importance in real estate. However, the near-equal emphasis is also provided on the property size and layout (45%), price and affordability (45%), which suggests that homebuyers are equally focused on securing value for their money while looking for spaces that meet their lifestyle needs.
Home loans is cited as the most preferred mode of financing across all income groups, with 79% of respondents relying on this option. However, there is a noticeable variation in how affluent homebuyers approach funding. While 83% of households earning between INR 1 mn to INR 5 mn prefer home loans, affluent buyers with household incomes above INR 5 mn show a higher inclination (19%) to utilize their personal savings or liquidate investments for home purchases compared to 11% in the less than INR 5 mn household income group. This suggests that wealthier individuals take a more flexible, diversified approach to financing, blending traditional home loans with personal resources to secure property.
The top priority for 74% of respondents is competitive interest rates, followed by flexible loan tenures (48%) and a quick loan approval process (38%). Guidance on legal and documentation aspects is also important for 25% respondents, and 15% of them value home insurance options.
