Rent or Buy? More than 90% people want to own a home: JLL’s Homebuyer Survey

The evolving COVID-19 pandemic will also influence short-term decision making with job security.

To rent or buy a home of one’s own will always remain a debatable point for generations. While renting may look better on an excel sheet, owning remains not just an emotional decision but also saves a lot of hassles for the individuals.

Economic uncertainty and rising stock market volatility is positioning real estate as the preferred asset class for investments in India with over 50% of consumers considering buying a new home in the next six months, says JLL, India’s largest real estate consultancy firm.

According to JLL’s Homebuyer Preference Survey, 91% respondents wanted to buy a home when asked to choose between buying and renting. Additionally, 67% believed that buying a home is a necessity, not a luxury. The survey was conducted in June-July this year and has seen participation from 2,500 respondents across Mumbai, Delhi NCR, Bengaluru, Pune, Chennai and Hyderabad.

The evolving COVID-19 pandemic will also influence short-term decision making with job security cited as the biggest concern when contemplating the purchase of a home, respondents say.

Some key findings of the survey are:

• The survey uncovered that a greater proportion of people in the age group of 20-35 years were likely to defer their home purchase plans by more than six months.
• Polled consumers above 35 years indicated that they are more inclined towards buying a property in the next six months.
• More than 50% of the prospective homebuyers indicated a preference to buy a 2 BHK apartment with size ranging from 800 to 1,000 sq ft.
• Homebuyers want to mitigate the risk and are willing to pay a premium for properties from reputed developers, showing an affinity towards ready-to-move-in properties in gated societies and township projects.
• Most respondents indicated a preference for properties in the sub Rs 50 lakh and Rs 50-75 lakh category. On the supply side, developers have also realigned their products, with 60% of the new launches in the past two years falling in the Rs 50 lakh and Rs 50-75 lakh price segments.