Mumbai, Nov 7 : As Baby Boomers, Gen X and millennials prefer to buy homes in India, Gen Z shows a notable difference and lean towards renting a place, according to a report on Thursday.

Baby boomers favour investments but millennials prefer to upgrade their property and the reasons for purchasing a home show distinct generational difference, according to a Knight Frank report.

About 79 per cent of Baby Boomers, 80 per cent of Gen X and 82 per cent of Millennials favour homeownership, while among Gen Z, only 71 per cent prefer to own a home and a high 27 per cent leaning towards renting.

Millennials (39 per cent) and Gen Z (36 per cent) are leading the trend of upgrading and purchasing for end-use, while Baby Boomers display a stronger interest in investments (29 per cent) and retirement plans (15 per cent).

Overall, 37 per cent of respondents are upgrading to a better home, reflecting a growing shift towards mid-range and luxury housing which was traditionally concentrated in select cities but is now expanding to Tier 1 cities in India.

The remaining 32 per cent are first-time homebuyers for end-use, 25 per cent are investing and 7 per cent cite other reasons, such as retirement or acquiring a second home or vacation home, the report mentioned.

The report further revealed that 52 per cent prefer apartments, followed by studio apartments at 19 per cent and independent houses or villas at 17 per cent.

In terms of financing, about 79 per cent of respondents indicated home loans as their preferred mode for purchasing a home.

Overall, 80 per cent of respondents expressed a preference for owning a home, with only 19 per cent opting for renting and a mere 1 per cent remaining uncertain.

According to Shishir Baijal, Chairman and Managing Director, Knight Frank India, they anticipate a resilient real estate landscape that aligns with India's broader development goals.

Location stands out as a priority and is the determining factor for 50 per cent of respondents, affirming its timeless importance in real estate.

The builder's reputation (35 per cent) and proximity to workplace (33 per cent) play an important role, reflecting a strong demand for reliability and convenience -- key factors that enhance buyer confidence in their long-term investment.

/IANS