Millennials and Gen Z buyers will comprise about 60% of new homebuyers by 2030, a report by real estate consultant JLL said.
The report added that the urban homeownership rate is set to increase to 72% by 2025, up from 65% in 2020. This will be supported by affordable financing options and a younger demographic entering the housing market.
It further stated that India’s housing market is poised for a remarkable transformation by 2025, driven by rapid urbanisation, technological innovations, and changing consumer preferences, stated Ritesh Mehta, Senior Director and Head (North and West), Residential Services and Developer Initiative, JLL India, in his note. Tier II and III cities are emerging as pivotal growth hubs, with smaller urban centres like Jaipur, Indore, and Kochi driving more than 40 per cent of new housing developments by 2025.
By definition, Millennials, or Generation Y, are the people born between the early 1980s and the mid-1990s to early 2000s, while Generation Z are born between the mid-to-late 1990s and early 2010s.
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The housing sector contributes 13% of the GDP
According to JLL, the housing sector is expected to contribute 13% to the national GDP by 2025, reflecting its resilience and potential.
Projected to grow into a USD 1 trillion market by 2030, the sector is evolving in response to demographic shifts, policy reforms, and global trends.
The report added that sustainability once considered a luxury, is now necessary in the housing market. Green-certified buildings are expected to account for 30% of new residential projects by 2025, doubling from 15% in 2020.
According to the report, the demand for sustainable development, smart homes, tech-integrated living spaces, and affordable housing initiatives has gained momentum in the market.
In 2024, it added that sustainable development is not just a buzzword but a critical factor influencing property values and buyer decisions.
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Green building certifications, like LEED (Leadership in Energy and Environmental Design), are becoming more common as the real estate industry prioritises sustainability, as per JLL.
According to JLL, the demand for smart homes and tech-integrated living spaces is skyrocketing, while budget-friendly housing remains a key focus in India.
The number of residential units sold in 2024 translates to approximately 85% of the total units sold in 2023.
The year 2024 saw a remarkable 17% increase in sales compared to the same in 2023.
The note added that this upward trajectory in demand paved the way for sustained growth in the country’s residential asset class. The sales have doubled as compared to 2023, as per the JLL. report.
