Top News

Investment Plan: These days, young people are avoiding property investment; they find renting a home preferable to buying one. Instead, the focus is shifting towards other forms of investment and savings.

Investment Plan: In the past, people invested heavily in real estate. Generations ranging from our great-grandparents to our fathers invested significantly in property and always advised us to do the same. However, times have changed, and so has the mindset of the youth. Naturally, their investment strategies are evolving too. Today, young people are planning to invest elsewhere rather than in real estate. Let’s find out more.

Renting is Better Than Buying

A large number of Millennials and Gen Z in India now prefer renting over buying a home. According to a report by the real estate platform NoBroker, 46% of tenants wish to live in rented accommodation for the long term. Among those aged 25–34, 53% stated that they consider renting better than buying, a view shared by 48% of those aged 35–44.

Here’s the Reason

The primary reason behind this shift in mindset among the youth is the rising cost of home loan EMIs. In many major cities, the monthly EMI for a home has become double—or even more than double—the rent for a similar property. Consequently, young people prefer to channel their savings into mutual funds, the stock market, and other investment avenues rather than buying a home.

According to the report, purchasing a home has become significantly more expensive in cities like Gurgaon, Bengaluru, Hyderabad, and Mumbai compared to the past. Therefore, many prefer to maintain financial freedom by renting rather than committing to long-term home loans.

Youngsters Desire a Better Lifestyle

The mindset of the youth is evolving. They are no longer renting simply because they cannot afford to buy a home; rather, they are seeking a better lifestyle. Their preferences have shifted towards large homes, gated communities, fully furnished apartments, and premium residential projects. Frequent job changes, hybrid work models, rising property prices, and growing awareness regarding financial planning are key drivers of this shift.

Rising Rents

Many young people prefer not to buy a home until they have decided where they want to settle down for the long term or permanently. This trend has led to a steady rise in rental rates. Rents are increasing most rapidly in the Mumbai Metropolitan Region (MMR), followed by Chennai and Bengaluru. Simply put, for many young people, living in a rented home is no longer a matter of compulsion but a well-considered financial decision.