Millennials, Gen Z to Dominate India’s Housing Market by 2030: Report

According to a comprehensive report by global real estate services firm JLL, millennials and Generation Z are set to dominate India's housing market. By 2030, these younger demographics are expected to account for an impressive 60% of new homebuyers in the country.

This marks a significant shift in India's real estate landscape, driven by changing lifestyles, better financial access, and a growing preference for homeownership among young professionals.

The study also projects urban homeownership rates to increase from 65% in 2020 to approximately 72% by 2025. The surge is attributed to affordable financing options and the influx of a younger demographic into the housing market.

Market Evolution

India's Housing Market Poised for Transformation

The housing market in India is on the brink of a major evolution. Ritesh Mehta, Senior Director and Head (North and West) of Residential Services and Developer Initiative at JLL India, predicts significant changes by 2025.
The transformation will be shaped by rapid urbanization, cutting-edge technological advancements, and evolving consumer preferences.

Additionally, Tier II and Tier III cities, such as Jaipur, Indore, and Kochi, are expected to contribute to over 40% of new housing developments by 2025, highlighting the increasing importance of smaller urban centers in the country’s real estate growth.

Economic Impact

Housing Sector's Growing Contribution to GDP

The JLL report estimates that the housing sector will contribute 13% to India’s GDP by 2025. By 2030, the sector is projected to expand into a $1 trillion market, fueled by demographic changes, forward-looking policy reforms, and global real estate trends.

Sustainability is now at the forefront of India’s housing market. Green-certified buildings are anticipated to make up 30% of new residential projects by 2025, showcasing the growing importance of environmentally conscious construction practices.

Trends in the Housing Market

Rising Demand for Sustainable and Tech-Integrated Homes

The report emphasizes the growing demand for sustainable development, smart homes, and technology-integrated living spaces. The surge in interest for these features is reshaping buyer priorities, with sustainability now considered a critical factor influencing property values and consumer decisions.

Green building certifications such as LEED (Leadership in Energy and Environmental Design) are becoming increasingly common, as developers align with global sustainability standards to attract discerning buyers.

Sales Growth

Robust Residential Sales in 2024

India’s residential real estate sector experienced a remarkable 17% growth in sales during 2024 compared to the same period in 2023. Around 85% of the residential units sold in 2024 equaled the total units sold in 2023, highlighting the consistent upward trajectory of the market.

This sustained demand is being driven by a mix of smart home features, affordability initiatives, and policy reforms. Budget-friendly housing continues to play a pivotal role, making homeownership accessible to a broader spectrum of buyers.

Conclusion

India’s real estate market is evolving rapidly, driven by the aspirations of younger demographics and a focus on sustainable, tech-enabled housing. With millennials and Gen Z set to dominate homeownership, coupled with rising urbanization and technological integration, the housing sector is well-positioned to grow significantly in the coming years.

This growth not only highlights changing consumer preferences but also underlines the sector's pivotal role in shaping India’s economy and infrastructure development.