When members of the cockroach Janata Party (CJP) gathered at Delhi’s Jantar Mantar to protest against the exam paper leak, they were not just demanding accountability. Their protest was designed for the social media age, with meme-worthy slogans, visual storytelling, and a strong sense of community involvement.
This generation expects every service to be available on a smartphone and now wants homes to reflect those habits. Artificial intelligence can help real estate developers interpret these changing preferences, but the bigger change is cultural: Homes are no longer designed solely as places to live; These are designed based on how Gen Z likes to live.
While the majority of Gen Z are still renting or living with family, its older group, especially those aged 25 to 29, are emerging as a major segment of first-time homebuyers. Many are salaried professionals in technology, finance, consulting, healthcare and entrepreneurship, inspiring developers to craft projects featuring compact homes, smart technology, flexible layouts and community-centric amenities.
Rent first, buy later
Unlike previous generations, Gen Z is not rushing into home ownership. For many young professionals, renting provides the flexibility to change jobs and cities during the early stages of their careers. But the purchase remains a long-term goal.
Real estate experts say as incomes rise and rents continue to rise in cities like Bengaluru, Mumbai and Gurugram, many people are preferring to buy homes early, seeing property as both a lifestyle enhancer and a long-term wealth creator.
A recent report from NoBroker revealed that tenant behavior is changing as fast as tenant demographics. Gen Z renters move homes nearly 1.5 times more often than older cohorts, compressing the rental cycle in a way that landlords are still adjusting to. Among tenants aged 18–24, about 30% move every six to 12 months, while about 10% of tenants aged 35 and older stay. As renters age, stability returns: Most people over the age of 55 rent for more than three years in a row.
Smaller homes, better designs
Gen Z buyers are less concerned about owning the biggest apartment and more focused on making every square foot count. Instead of oversized homes, they prefer well-planned 1BHK and 2BHK apartments with minimal wasted space, flexible layouts that accommodate hybrid working, large balconies, better natural light, open kitchens and intelligent storage solutions.
“Today, we move beyond identifying favorite features to focus on understanding how these people actually live, how they go about their day and what matters to them at different moments,” said Shivam Agarwal, Vice President, Strategic Growth, Sattva Group.
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Instead of relying solely on traditional market surveys, developers are increasingly deploying AI tools to analyze customer feedback and identify emerging lifestyle patterns, he told HT Real Estate.
Those insights are translating into tangible design changes. Young buyers wanted homes that ‘breathed’, prompting developers to improve cross-ventilation, raise ceiling heights and convert balconies into usable outdoor spaces. Storage, once an afterthought, is now being built into apartments through more flexible, space-efficient designs.
“Community design has also evolved. Buyers were not only looking for amenities, but also opportunities to connect. This led to the creation of interest-based clubs, open social spaces designed for everyday interactions and curated resident experiences. Pet-friendly areas were consistently highlighted in feedback and are now thoughtfully incorporated into the common area plan,” he said.
Technology is no longer a luxury, dedicated parcel rooms are a must-have
For Gen Z, technology is expected, not marketed as a premium feature.
App-based building management systems that allow residents to manage visitors, amenities, and home services have become increasingly common.
The rapid growth of e-commerce has also changed residential design. Dedicated parcel and delivery rooms are emerging as a practical necessity, while EV charging stations are being seen as essential infrastructure rather than premium add-ons.
Community spaces are also developing. Realtors say that instead of seldom-used clubhouses, developers are creating co-working lounges, wellness spaces, pet-friendly parks and informal gathering areas that encourage interaction among residents.
Move-in-ready homes are gaining popularity
Young professionals relocating for work are increasingly preferring fully furnished or semi-furnished homes, especially in rental markets, to avoid the cost and inconvenience of furnishing an apartment from scratch.
Many people rent furniture through subscription services, allowing them to move easily and upgrade furnishings without high upfront costs. However, once they buy a permanent home, most people gradually start owning furniture and prefer furnished apartments.
Developers say Gen Z is forcing the industry to rethink not only the products but also the design itself.
“Gen Z homebuyers are redefining what makes an apartment desirable,” said Manan Joshi, founder, Sarvam Properties. “Beyond affordability, they are looking for smart layouts, modern amenities, seamless connectivity, co-working spaces, fitness facilities and technology-enabled amenities.”
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Bhavesh Kothari, founder and CEO of Property First Realty, said young buyers are taking a more analytical approach to home ownership, balancing affordability with connectivity, build quality, lifestyle amenities and long-term appreciation potential.
Gen Z prefers to use investment profits to buy a home
According to JLL, Millennials and Gen Z are expected to make up nearly 60% of new home buyers by 2030. Their priorities are shifting demand towards sustainability, technology integration, neighborhood experience and flexibility rather than just larger apartments.
The Anarock Homebuyer Sentiment Survey (H1 2025) had also highlighted the growing generational divide. While 63% of respondents across different age groups identified real estate as their preferred investment, the motivations differ.
For the Millennial generation, home ownership is closely linked to family formation, stability, and long-term security. Nearly 70% of them plan to use investment profits to buy a home. Gen Z is also embracing home ownership, but much earlier than previous generations. Instead of viewing property primarily as a heritage asset, they evaluate homes based on rental potential, appreciation prospects, financing costs and lifestyle value, while placing greater emphasis on flexibility and quality of life, it was noted.
