Most Indians plan to switch from renting to owning Assets: Study

                Mumbai: Three out of every four Indians now prefer asset owning over renting to secure their future in the post-pandemic world, a study by Godrej Housing Finance (GHF) revealed on 
Wednesday.

The study, Post 'Generation-Rent' was commissioned by Godrej Housing Finance (GHF), 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.

Industry experts predict a continued uptick in the coming months, easing the long period of pent-up demand across sectors. The survey validates the sentiments as most of those 
surveyed stated they are now more open to investing 
in a property of their own against the earlier notion of being labelled as the 'Generation-Rent'.

‘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, around 
62% of Indians highlighted that they now preferred purchasing their furniture, car, home, and wedding apparel rather than renting them as this provides them with greater stability in 
future.

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. Nearly 33% 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.

"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," Manish Shah, MD & CEO, Godrej Housing Finance, said.

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.

Source: Live mint.com