Millennials-Generation Z will account for 60 percent of new homebuyers by 2030; claims in report

New Delhi| Increasingly in the residential market, Millennials and Generation Z will account for 60 per cent of new home buyers by 2030. Real estate services firm JLL has made this claim in a report. The real estate market will be supported by cheaper financing options and young people entering the housing market, it said. The ownership average of houses in urban areas will increase to 72 per cent by 2025, up from 65 per cent in 2020. Millennials means the generation, born between 1981 and 1996. Generation Zs are born between the mid-1990’s and early 2010’s.

The report said that the demand for smart houses along with affordable housing initiatives has increased the pace of the market. Budget-friendly housing remains a major focus in the country. 85 percent more houses have been sold in 2024 than were sold in 2023.

India’s residential market is set for good transformation by 2025. It is driven by rapid urbanization, technological innovation and changing customer preferences. Tier-2 and tier-3 cities are emerging as centers of growth. In this, more than 40 percent of new houses will be built by 2025 in small towns like Jaipur, Indore and Kochi.

According to JLL, the domestic residential sector’s contribution to gross domestic product (GDP) could rise to 13 percent by 2025. By 2030, the size of the region is estimated to be one trillion dollars. The report said the real estate sector is evolving from demographic changes, policy reforms and global trends. The share of Green certified buildings is expected to be 30 per cent by 2025, double from 15 per cent in 2020.