Key Findings
- 44% have started looking for a new house and a home loan provider in the past one year
- 27% of residents in the city are looking to buy a new house as they always wanted to buy a dream house of their own
- 23% people consider buying a new house as an option as a result of savings which would have otherwise been spent on travel – highest amongst other cities in India
- When it comes to a housing finance company, people in Chennai state flexibility on policy and timelines and customer service as the most important while choosing a home loan provider
Chennai, January, 2022:72%people in Chennai prefer asset owning over renting to secure their personal future in the post-pandemic world, revealed the latest study, Post ‘Generation-Rent’ by Godrej Housing Finance (GHF). The study was commissioned 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.
The study further revealed that 44% of people in the city have started looking for a new house and a home loan provider in the past one year, and 27% are looking to buy a new house as they always wanted to buy a dream house of their own. 23% respondents said that they are looking for a new house as they have saved enough for a down payment due to absence of travel. This is the highest for any other city in India. Further, the study revealed that Chennai respondents consider customer service and ease of communicating with the company/staff utmost important while choosing a home loan provider compared – this is the most for any city 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 also highlighted around 76% of Indians now plan to switch from renting to owning assets as an investment and lifestyle choice.
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.