60% of Indian homebuyers to be millennials, Gen-Z by 2030
According to a report by global real estate services firm JLL, millennials and Gen Z are expected to make up around 60% of new homebuyers in India by 2030. The study also anticipates an increase in urban homeownership rates from 65% in 2020 to around 72% by 2025. This increase is expected to be driven by affordable financing and a younger demographic entering the housing market.
India's housing market set for significant transformation
Ritesh Mehta, Senior Director and Head (North and West), Residential Services and Developer Initiative at JLL India, expects India's housing market to undergo a major transformation by 2025. The change will be fueled by rapid urbanization, technological innovations, and changing consumer preferences. Further, Tier II and III cities like Jaipur, Indore, Kochi are expected to drive over 40% of new housing developments by 2025.
Housing sector's contribution to GDP and market growth
The JLL report also predicts that the housing sector will contribute 13% to India's GDP by 2025. The sector is expected to develop into a $1 trillion market by 2030, driven by demographic changes, policy reforms, and global trends. Sustainability is now considered a necessity, not a luxury, in the housing market, with green-certified buildings expected to constitute 30% of new residential projects by 2025.
Demand for sustainable development and smart homes
The JLL report also highlights the increased demand for sustainable development, smart homes, and tech-integrated living spaces. It also notes that affordable housing initiatives are gaining traction in the market. In 2024, sustainability has become a critical factor influencing property values and buyer decisions. Green building certifications like LEED (Leadership in Energy and Environmental Design) are becoming more common as the real estate industry prioritizes sustainability.
Residential sales in India see significant increase
While the demand for smart homes and tech-integrated living spaces is skyrocketing, budget-friendly housing continues to be a key focus in India. The number of residential units sold during 2024, which amounts to about 85% of the total units sold during the entire 2023. 2024 witnessed a phenomenal 17% increase in sales compared to the same period in 2023. This upward trajectory in demand paved the way for sustained growth in India's residential asset class, JLL's report stated.
