A Knight Frank survey of 1,629 urban Indian homebuyers shows apartments as the most preferred housing type (52%), followed by studio apartments (19%) and independent houses (17%). While 37% of respondents are upgrading their homes, 32% are first-time buyers, and 25% are investors. Location remains the primary decision factor for 50% of buyers, with property size and price following closely at 45% each. Home loans are the dominant financing choice (79%), though affluent buyers show more flexibility in using personal savings. Competitive interest rates (74%) and flexible loan tenures (48%) are the key priorities in loan selection.
A recent Knight Frank survey of 1,629 urban Indian homebuyers reveals significant trends in housing preferences and financing patterns. In terms of property types, apartments emerge as the clear favourite chosen by 52% of respondents while studio apartments and independent houses/villas account for 19% and 17% respectively. Gated communities and land plots show minimal appeal at 7% and 5%.
The study identifies distinct buyer motivations with 37% looking to upgrade their living situations, indicating a growing appetite for mid-range and luxury housing beyond traditional premium markets into Tier 1 cities. First-time homebuyers constitute 32% of respondents, while 25% are purchasing for investment purposes and 7% cite various other reasons including retirement or vacation homes. When it comes to decision-making factors, location remains paramount with 50% of respondents considering it crucial. However, property size/layout and price/affordability follow closely behind at 45% each, suggesting that buyers are equally concerned about value for money and lifestyle compatibility.
Home loans dominate as the preferred financing method across income brackets, with 79% of respondents favouring this option. However, financing patterns show interesting variations based on income levels. Among households earning between INR 1-5 million, 83% prefer home loans. In contrast, affluent buyers (earning above INR 5 million) show a greater tendency to use personal savings or liquidate investments (19%) compared to their lower-income counterparts (11%), indicating a more diverse approach to property financing.
Regarding loan preferences, competitive interest rates emerge as the top priority for 74% of respondents. Other important factors include flexible loan tenures (48%) and swift approval processes (38%). Additionally, 25% of respondents value guidance on legal and documentation aspects, while 15% consider home insurance options important.
These findings highlight evolving preferences in India's urban housing market, where traditional financing methods remain strong but are increasingly complemented by alternative approaches among wealthy buyers. The data also underscores a balanced consideration of location, property features, and financial aspects in home-buying decisions.
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