News: How Gen Z Preferences Are Reshaping Housing Projects-24-07-2026

A generation that expects every service on a smartphone now wants homes built around the same habits, and developers are redesigning projects accordingly. Artificial Intelligence is helping them read the shift, but the change is mainly cultural.

Most of Gen Z still rents or lives with family. Its older members, especially those aged 25 to 29, are emerging as a key group of first-time buyers. Many are salaried professionals in technology, finance, consulting, healthcare and entrepreneurship, which is pushing developers towards compact homes, smart technology, flexible layouts and community-centred amenities.

Renting first

Young professionals value the freedom renting gives them to change jobs and cities, though ownership remains the long-term aim. Real estate experts say rising incomes and climbing rents in Bengaluru, Mumbai and Gurugram are leading many to buy earlier than they otherwise would.

A recent NoBroker report found that Gen Z tenants move roughly 1.5 times more often than older cohorts. Among tenants aged 18-24, as many as 30% shift every six to 12 months, against around 10% of those aged 35 and above. Most tenants over 55 stay for more than three years.

Compact but better planned

These buyers prefer well-planned 1BHK and 2BHK apartments with little wasted space, layouts that suit hybrid work, larger balconies, natural light, open kitchens and intelligent storage.

Shivam Agarwal, Vice President, Strategic Growth, Sattva Group, told HT Real Estate that developers now try to understand how such buyers actually live through the day, using AI tools to analyse customer feedback rather than relying only on conventional surveys. Buyers wanted homes that "breathe", which led to better cross-ventilation, higher ceilings and usable balconies. He said buyers also sought ways to connect, resulting in interest-based clubs, open social spaces and curated resident experiences, while pet-friendly zones are now part of common-area planning.

Technology as a given

App-based building management for visitors, amenities and home services is increasingly common. With e-commerce growing, dedicated parcel and delivery rooms are becoming a practical need, and EV charging stations are seen as essential infrastructure. In place of occasionally used clubhouses, realtors say, developers are creating co-working lounges, wellness spaces, pet-friendly parks and informal gathering areas.

Professionals relocating for work prefer fully or semi-furnished homes, particularly when renting, and many rent furniture through subscription services. After buying a permanent home, most gradually move to owning furniture.

Manan Joshi, founder of Sarvam Properties, said Gen Z buyers look beyond affordability to smart layouts, modern amenities, connectivity, co-working spaces and fitness facilities. Bhavesh Kothari, founder and CEO of Property First Realty, said younger buyers take a more analytical approach, weighing affordability against connectivity, construction quality, amenities and long-term appreciation.

What the data shows

According to JLL, millennials and Gen Z are expected to make up nearly 60% of new homebuyers by 2030, shifting demand towards sustainability, technology, neighbourhood experiences and flexibility.

The Anarock Homebuyer Sentiment Survey (H1 2025) found that 63% of respondents across age groups named real estate as their preferred investment. For millennials, ownership is tied to family formation, stability and long-term security, and around 70% of them plan to use investment gains to buy a home. Gen Z is buying much earlier than previous generations and judges homes on rental potential, appreciation prospects, financing costs and lifestyle value rather than as a legacy asset, the survey had noted.