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Three In Four Indians Prefer Ownership Over Renting: Report
One in two Indians reveal that they have started looking for a new house for themselves, reveals Post ‘Generation-Rent’ study by Godrej Housing Finance
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3 out of every 4 Indians now prefer asset owning over renting to secure their future in the post-pandemic world, revealed the latest study, Post 'Generation-Rent' commissioned by Godrej Housing Finance (GHF), to gain insight into the shift in consumer's preference and the factors thereof that drive the decisions for considering property purchase, asset creation, and investment avenues by Indian consumers to secure their future in a post-pandemic world.
Industry experts predict a continued uptick in the coming months, easing the long period of pent-up demand across sectors. The survey validates the sentiments as most of those surveyed stated they are now more open to investing in a property of their own divagating from the earlier notion of being labelled as the 'Generation-Rent'.
‘Generation-Rent’ is a well-documented phenomenon associated with Millennials across the world who prefer to rent over asset ownership of consumer durables and even housing. In stark contrast to earlier assumptions, around 62% of Indians highlighted that they now preferred purchasing their furniture, car, home, and wedding apparel rather than renting them as this provides them with greater stability in future.
The Post ‘Generation-Rent’ study by Godrej Housing Finance revealed that almost half of Indians (49.13%) had started making headway in their house-hunting aspirations and reaching out to housing finance companies in the past year. 32.9% believe that buying a new house is the best investment option at present, while 16% mentioned owning a house is a top priority as work from home is the new normal.
The study also found that 25.5% of the Indians consider owning a home the second-most important aspect defining 'personal security', with job security leading the chart with 40.6% voting for it.
Commenting on the findings, Manish Shah, MD & CEO, Godrej Housing Finance, said, "The pandemic has brought about a clear shift in preference amongst Indian consumers. They are gravitating towards future-proofing through long-term investments. With affordability at an all-time high, there has probably never been a better time to buy a house, which is both an important element of asset allocation and a key pillar of financial security. That said, customers believe that this change requires enhanced support from their financial partner to advise and guide them through this long-term commitment. The study re-affirmed our need to double down on offering innovation, flexibility and digital alternatives in both product design and delivery to facilitate homeownership better and ease the customer's financing journey."
The study further revealed that flexibility on policy, credibility and transparency of the brand, digital offerings, and relative turnaround time for processing are the top factors that drive the selection of financing partner. This can be attributed to consumers becoming accustomed to the on-demand gratification of their requirements aided by digital technology.
The study also found that digital-first and frictionless processes are perceived as both an advantage and a starting point for consumers while choosing today's financing brands. Companies and services that offer end-to-end digital solutions gain an edge in consumer preference over more traditional financing models.