Gen Z is fundamentally reshaping the landscape of wealth creation, moving away from the conventional wisdom of property as the default first investment. Instead, this generation views real estate as one component within a broader, diversified portfolio that includes equities, mutual funds, and various digital investment products.
A New Approach to Investment
According to Gaurav Mavi, co-founder of BOP.in, while real estate maintains its relevance in a diversified portfolio, young investors are evaluating it against other asset classes based on factors like liquidity, potential returns, and flexibility. This shift is driven by increased access to diverse investment products, from exchange-traded funds to the recently introduced Small and Medium REIT (SM REIT) framework by SEBI in March 2024.
The evolving strategy for Gen Z isn't about choosing between physical property and financial assets, but rather about strategically combining them to achieve different objectives.
Real Estate in a Modern Portfolio
India's residential property market continues to exhibit strong demand, with Knight Frank reporting over 3.48 lakh homes sold across eight major markets in 2025. Premium housing also saw an increase in market share, indicating robust interest in higher-value properties. Regions like Delhi-NCR experienced significant price appreciation, with some micro-markets seeing nearly 10% annual growth, influenced heavily by infrastructure development.
However, liquidity remains a critical consideration for Gen Z investors. Their career mobility, entrepreneurial spirit, and propensity for relocation make tying up substantial wealth in illiquid physical assets less appealing, especially early in their careers.
Addressing Liquidity Concerns
- Fractional Ownership Platforms: India currently manages nearly ₹5,000 crore in assets through these platforms, allowing investors to own a portion of a property.
- SM REITs: These structures could potentially monetize office assets worth an estimated ₹67,000 crore–₹71,000 crore, offering another avenue for real estate exposure without direct whole-property ownership.
Balancing Benefits and Risks
Physical property offers unique advantages such as rental income, tangible ownership, and the ability to leverage borrowing for larger acquisitions. Yet, these benefits come with inherent considerations including transaction costs, ongoing maintenance, leverage risk, and comparatively lower liquidity compared to financial instruments.
Infrastructure-led development continues to be a significant driver for property investment decisions. Areas around the Dwarka Expressway, Yamuna Expressway, Greater Noida, and the Noida International Airport are experiencing heightened residential and commercial activity due to improved connectivity and economic infrastructure.
Ultimately, for Gen Z investors, the integration of real estate into their wealth creation strategy depends on individual factors such as income levels, investment horizon, liquidity needs, risk tolerance, and the quality and location of the property itself. The overarching trend is toward a portfolio-based approach where diverse asset classes serve distinct roles rather than competing for the same investment slot.