Here’s How Millennials Are Driving Demands To Change The Real Estate Landscapes
Residential real estate property in Mumbai hit its highest recorded sale in India, in the past 10 years, in July 2021. A substantial reason for this are millennials, whose reaction to the pandemic highlighted the change of mindset.
According to some of the latest reports, the shift in millennials’ investment and spending pattern is not just owed to a single factor, but multiple factors are involved.
Who exactly are millennials?
The millennial generation comprises people born between 1981 and 1996.
According to a leading report, the millennial population of India alone is higher than the complete population of the US, they form one-third of the total Indian population and 46% of the country’s workforce.
In India, millennials were considered a generation that seeks instant gratification and are extensive spenders, but the trend has been changing.
To What Do We Owe The Changing Trends?
A recent report stated that millennials are ending their leases and moving to real estate investing. They are also making the fastest-growing segment of home buyers today. Experts have called this behavior a shift from the borrowing lifestyle to prioritizing investment in houses, medical bills, reports. They are also saving up to make big purchases or create emergency funds.
This might have something to do with them becoming the sole providers for their family or simply a response to the pandemic-induced lockdown and the subsequent economic crash.
While we can say that the pandemic has played a key role in the shift of mindset towards settling down and investing in real estate property, several smaller factors have influenced the decision as well.
Work From Home or the WFH model was a great success in India where both employers and employees weighed down the hybrid working model as a sustainable framework for the future work culture where they wouldn’t have to change cities for jobs again and again.
Apart from this the lowest ever interest rates on home loans in Mumbai have also provided the ideal impetus for millennials to make their dream come true. The combination of easy credit, record-low interest rates and incentives by the government have supplemented the record-breaking purchases. And now home-buyers are also looking to purchase property and earn passive income by renting it out. All in all, we can say that the millennials group constitutes 63% of all buyers amongst all user bases and the percentage has gone up from 49% in pre-covid times to this.
Assetmonk which is a leading real estate investment platform is also taking the lead in providing fractional ownership and co-living deals in metropolitans such as Bangalore, Hyderabad and Chennai and providing high-end real estate deals.
Their GMR Airport project, which was also born in the pandemic, has attracted a lot of investors and is expected to be a big show.
For More Insight, Read:-
Real Estate Trends 2021: How Will The Festive Season In COVID -19 Impact The Industry?
As millennials form almost 50% of the Indian workforce, they clearly have an upper hand in the market. With the pandemic, millennials have started analyzing their spendings and making smart investments.
Millennial buyers are looking for a source of generating passive income. We know this from the increasing trend in people opting for fractional ownership or rental real estate.
Millennials are buying homes a lot later than their parents did, and they are also including some relevant trends and going for a more practical living space. We know them to have a desire for multifunctional community spaces and that desire is being reflected in their houses as well.
Big kitchens, working spaces, and great locations are some features of modern homes.