The millennials, now over 40, are becoming key real estate buyers. The generation makes up 34% of India’s population and is entering its primary homeowning years. This demographic has driven the real estate market by being 54% of the buyers in 2022. Having faced challenging periods of economic upheaval and market volatility, this resilient generation is more likely to seek the security of owning a place. Over the next few years, their aspirations will drive real-estate demand.
Let’s explore the underlying reasons behind this trend and delve into the millennial mindset and values shaping the real estate market.
A Safe Haven in Transient Times
This perspective of a house as an asset is valuable to millennials, who have seen the world through swiftly changing times. The ever-evolving internet, technological disruption to business and social norms, and a tilt towards India’s urbanisation are just some facets of how the world has changed over the nascent lives of millennials. A home’s tangible benefits and emotional security are unique and comforting. In an era of economic volatility and an unpredictable equity market, millennials see homeownership as a means of diversifying their investment portfolios and finding stability.
It’s About Time
Millennials have faced various economic challenges, from the Great Recession to the recent Covid-19 pandemic, which has impacted their career growth and financial stability. Despite lower wages and increasing living costs, they have patiently accumulated wealth over time. You can tell that millennials have waited longer to reach a stage in life where they are comfortable and confident about owning a home.
A Predictable Store of Value
Real estate, whether residential or commercial, has historically proven to be a reliable long-term investment. Millennials recognize that real estate offers a stable and predictable store of value, particularly when compared to other asset classes such as equity, debt, gold, or cryptocurrency. With minimal market fluctuations and an average return of 10% over ten years, real estate provides millennials with a sense of security and a viable option for wealth preservation.
Considering the current and upcoming millennial demand for homes, developers are designing homes to make them more attractive to millennials. Here’s what you can expect in developments targeted towards them:
Complementing a Well-Rounded Life
The millennial seeks a holistic and well-rounded lifestyle. Such homeowners want amenities for sports, fitness, entertainment and leisure. Gyms, multi-sport courts, game rooms, libraries, gardens and pools come together to make for a complete development for millennials to appreciate as a home for themselves and their families.
The Green Consumer
The rise of eco-consciousness among millennials has sparked a demand for homes that prioritise sustainability. Natural light, open spaces, gardens, and ample greenery reduce energy consumption and provide residents with a deeper connection to nature, promoting peace and relaxation. Additionally, the presence of plants and trees helps regulate temperature and improve air quality within the community.
Dynamic Spaces for Evolving Lifestyle
As hybrid working and community living to gain prominence, developers are creating multi-use spaces that can adapt to various needs. For instance, a large clubhouse room may serve as a coworking space during the day, transform into a yoga studio in the evening, and accommodate social gatherings or celebrations during festivals. These flexible spaces cater to millennials’ evolving lifestyles and foster a sense of community.
Millennials are poised to continue driving the real estate market for the next decade. As they enter their peak homebuying years, developers like Provident Housing are designing projects to their preferences. You can explore dream homes for millennials by Provident Housing in Bengaluru, Goa, Hyderabad, Kochi, Mangalore, and Mumbai.
Source of data: https://www.financialexpress.com/money/aspiring-millennials-to-drive-the-real-estate-market-in-2023/2994693/
