Affordable financing, sustainability, and tech-integrated homes drive housing demand as Millennials and Gen Z lead the market shift.
New Delhi, December 25: India’s residential real estate sector is set for a significant transformation, with Millennials and Gen Z expected to make up 60% of new homebuyers by 2030, according to a recent report by JLL India, a leading global real estate services firm.
Millennials, born between the early 1980s and early 2000s, and Gen Z, born between the mid-1990s and early 2010s, are driving housing demand with changing preferences, better financial access, and an emphasis on sustainability and technology-driven homes.
Urban Homeownership on the Rise
The report projects an increase in urban homeownership rates to 72% by 2025, up from 65% in 2020. This growth is expected to be fueled by affordable financing options, favorable government policies, and a growing young demographic entering the property market.
“India’s housing market is set for a remarkable transformation by 2025, driven by urbanization, innovation, and evolving consumer behavior,” said Ritesh Mehta, Senior Director and Head (North and West), Residential Services and Developer Initiative, JLL India.
Growth in Tier II and III Cities
Smaller urban hubs like Jaipur, Indore, and Kochi are becoming key drivers of growth, contributing to over 40% of new housing developments by 2025. These cities are emerging as affordable yet modern residential hubs for young buyers and professionals.
Economic Contribution and Sustainability Focus
The housing sector is poised to contribute 13% to India’s GDP by 2025, showcasing its resilience and importance in economic growth. Furthermore, green-certified buildings are expected to account for 30% of new residential projects by 2025, up from 15% in 2020.
“Sustainability is no longer a luxury but a necessity,” the report states, highlighting the increasing adoption of LEED (Leadership in Energy and Environmental Design) certifications for residential projects.
Tech-Integrated Living and Smart Homes
The demand for smart homes and tech-integrated living spaces is on the rise, driven by a tech-savvy younger generation seeking convenience, efficiency, and security in their homes.
Strong Market Performance in 2024
The report revealed that the number of residential units sold in 2024 reached 85% of total sales recorded in 2023, with a 17% increase in year-on-year sales. This growth underlines the robust demand for residential assets in India, with sales figures almost doubling compared to the previous year.
Conclusion
The Indian housing market is set to witness unprecedented growth as Millennials and Gen Z take center stage in home buying decisions. With a strong focus on sustainability, smart technology, and affordability, the residential real estate sector is well-positioned to shape India’s urban landscape and economic future.
