About 44% intend to move into a new house in next 2 years: Report
As against the widely-held belief that most people are seeking to move out of urban areas as flexibility at the workplace emerges as a dominant theme, areas close to city centres still remain the most sought after among those planning to move
PremiumNew Delhi: Around 44% of people in India intend to move into new home in the next two years and most of them, including millennials, want to purchase residential properties instead of paying rent, according to a survey by property consultant CBRE India .
As against the widely-held belief that most people are seeking to move out of urban areas as flexibility at the workplace emerges as a dominant theme, areas close to the city centres still remain the most sought after among those planning to move, according to the findings by CBRE India which released a report ‘Voices from India: How will people live, work and shop in the future?’.
The sample size of the global survey was more than 20,000 people, of which 1,500 were from India across age groups comprising Gen Z, late millennials, early millennials, Gen X and baby boomers .
Indians display more flexibility towards moving or relocating than their global counterparts. The survey found that respondents display a stronger intention to move to a new home in the next two years (44% vs 31% in the previous two years). This is significantly higher when compared to both global and APAC respondents.
It is also interesting to note that as most cities in India swell to the beam, the definition of a true city centre continues to evolve. Most leading cities, especially Delhi-NCR, Mumbai, Bangalore, and Pune, are witnessing the emergence of suburbs that in many ways redefine the erstwhile ‘city centre’.
“Gen Z led the preference towards moving to a new home in the next two years, compared to only 29% of baby boomers. This indicates that the younger generation will primarily drive upcoming housing demand," CBRE said.
Except for Gen X, all other generations displayed a higher preference for locations near the city centres. Gen X displayed a slightly stronger preference for remote locations and a greater desire to move to another country as more experienced professionals seek overseas opportunities.
In fact, across age groups, the preference to move to another country was the highest in India (when compared to global or APAC respondents),“ CBRE said.
The survey also highlighted that of those planning to move, more than 70% wanted to buy a house, instead of renting. While India has always been an economy where home buying is preferred over renting, the uncertainty around the pandemic has further accelerated the need for homeownership and security.
“While a majority of the respondents intend to purchase a house, we should not discount the remaining cohort looking for rental accommodation - 40% of Gen Z would prefer to rent rather than purchase," said Anshuman Magazine, chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.
While 20% of Gen Z would prefer private rental accommodation, 17% look at student housing and shared accommodation as an option.
“Since this is the age group that will drive rental accommodation, developers must outline strategies to understand and tap demand well in time," he said.
“Further, families are now laying equal emphasis on a property’s quality and surroundings as on the unit itself. Therefore, attractive and thoughtful interior designs, well-planned outdoor areas and surroundings must now be complemented with remote working infrastructure."
With the pandemic having raised the importance of health and safety, the demand for professional property management services, particularly in apartment buildings has been on the rise. There is also an increasing need for dedicated office space at home as hybrid working becomes more widespread.
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