Friday, January 21, 2022

78% Bangaloreans Pplan To Switch From Renting To Owning Assets: Post ‘Generation-Rent’ Study By Godrej Housing Finance

Key Findings

* 25% feel purchasing house of their own is crucial to securing their future, second to job security (45%)

* 40% respondents feel buying a new house is the best investment option at present compared to the national average (32%)

* Flexibility on policy, timelines and credibility are the factors most important while choosing a home loan provider

78% people in Bengaluru 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). The study was commission 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 25% of people in the city feel purchasing house of their own is crucial to securing their future second to job security (45%). Additionally, 40% feel buying a new house is the best investment option at present compared to national average of 32%. 

‘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 found around 76% of Indians highlighted that they 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. 

About Godrej Housing Finance:

Godrej Housing Finance (GHF), a part of Godrej Industries Ltd., aims to build a long term, sustainable retail financial services business in India, deeply anchored around the Godrej Group's 124-year legacy of trust and excellence.

With a keen focus on product innovation, a digital-first approach, data-driven decision-making, and strong risk fundamentals, Godrej Housing Finance offers home loans and Loans against Property to customers across Mumbai, Delhi-NCR, Bengaluru, Pune and Ahmedabad

It follows a fair, fast and transparent process that enables Indians to purchase their dream homes - with flexible, affordable, and hyper-personalized loans to their financial capability and convenience. 

Godrej Housing Finance is committed to creating a great people organization built on the fundamentals of inclusivity, diversity and equality for all its employees, partners and stakeholders.

Methodology of the report: The report is based on interviews conducted by Innovative Research Services (India) Pvt. Ltd., with over 2000 Indians between 18-60 years of age across Bengaluru, Delhi, Chennai, Kolkata, Mumbai, Pune, and Ahmedabad.

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