ANAROCK Survey Reveals Young Indians Drive Real Estate Demand While Older Generations Focus on Security

A comprehensive survey conducted by ANAROCK during the first half of 2025 has unveiled distinct patterns in real estate preferences across different age demographics in India. The research indicates that younger generations, particularly Gen Z and Millennials, are spearheading housing demand, while older cohorts including Gen X and Baby Boomers are emphasizing stability and retirement planning in their property decisions.

Survey Findings Highlight Generational Divide in Property Investment

The study demonstrates that younger demographics show a statistically higher propensity toward homeownership compared to their older counterparts. For these groups, acquiring property extends beyond basic shelter needs, encompassing lifestyle aspirations and strategic financial planning objectives.

Gen Z individuals are displaying unprecedented interest in premium urban properties, with many choosing immediate purchase decisions rather than deferring their homebuying plans. Their motivation stems from desires for independence and recognition of real estate's investment potential. This trend reflects the broader shift in how India's luxury housing market is evolving to accommodate younger buyers.

Millennials are approaching homeownership as a wealth-building strategy, viewing real estate as a critical component of their long-term financial security framework. Many within this demographic perceive property investment as an effective method for accumulating assets over time.

Older Generations Prioritize Security and Retirement Planning

In contrast, Gen X and Baby Boomers demonstrate markedly different housing priorities, focusing on stability, low-risk investment options, and comprehensive retirement preparation. Their property choices reflect preferences for reduced risk exposure, enhanced comfort features, and long-term security considerations.

Despite these generational differences, real estate continues to maintain its position as a preferred asset class across all age groups, though the underlying motivations and purposes vary significantly based on life stage and financial objectives. This pattern aligns with broader trends seen in real estate portfolio building strategies across different demographics.

Implications for Real Estate Developers and Policy Framework

The survey results suggest an increasing demand for customized housing products tailored to specific generational requirements. This includes developing compact premium units designed for younger purchasers, alongside comfortable and secure residential options for older buyers seeking stability.

Marketing strategies, financing mechanisms, and amenity offerings will need strategic alignment with generational preferences to remain competitive. Younger consumers may prioritize technological integration, community spaces, and flexible living arrangements, while older buyers might emphasize accessibility features, minimal maintenance requirements, and long-term livability factors.

The findings also indicate that policy incentives, including subsidies, credit accessibility programs, and tax benefits, require careful crafting to address generational diversity in the housing market. Effective policies must ensure younger buyers are not excluded from homeownership due to pricing constraints, while simultaneously providing older homebuyers with confidence in their investment security. This is particularly relevant given the current focus on affordable housing projects in major cities.

The research underscores the need for a nuanced approach to real estate development and policy formulation that acknowledges the distinct requirements and motivations of different age cohorts in India's evolving housing market.