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.