One in two in Ahmedabad consider home ownership a crucial determinant of personal security, reveals study by Godrej Housing Finance.
94% people in Ahmedabad have now become more inclined towards asset building and property purchase as an investment option 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 decisions for considering property purchase, asset creation, and investment avenues by Indian consumers to secure their future in a post-pandemic world.
The study further revealed that 53% of people in the city feel purchasing house of their own is crucial to securing their future compared to 37% before the pandemic. Two in three respondents reveal that they have started looking for a new house for themselves in the past one year. Additionally, 57% feel buying a new house is the best investment option at present. These figures are the highest when compared to other metros and cities in India.
‘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, The study by Godrej Housing Finance found around 76% of Indians now plan to switch from renting to owning assets as an investment and lifestyle choice.
It also 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 nationally 25.5% 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.