Home ownership has always been an important milestone for Indians. The country’s millennial generation also holds true to this sentiment, but with a few changes. Despite showing a peaked involvement in the real estate sector, the younger generation is more cautious in their approach. While home ownership is an important task for them, the Generation Y wants it to suit their exact requirements, and are willing to wait to find the right residence. As they value experiences over materials things, they prefer their home becomes a part of their high-tech, connected lifestyle seamlessly. The millennials population is not just increasing in size but also in its economic footprint and will be a dominant force in the real estate market in the next five years. This is both a challenge and an exciting opportunity for the developers to reach new prospects.
Some of the traits presented by millennials towards the housing sector in India are:
The younger generation has risen up the career ladder at a rapid pace, giving them a larger share of disposable income at a younger age, as compared to their predecessors. According to a report by Delloite India, millennials currently make up 47% of the country’s population, and are the predominant wage earners. This grants them more purchasing power that they can employ towards buying a house. They also think of real estate as a stable investment opportunity, making home ownership a more lucrative occasion for them.
The working populace of millennials prefer convenience over style. Adaptation and multi-functionality are qualities favoured by this generation and they want every aspect of their life to reflect that – including their homes. Smart living has become an important element for millennials. Digitally connected, and energy conserving appliances, state-of-the-art security systems, and creative utilisation of space is something this generation is looking for in their residential investment.
Having grown up in the digital age, the millennial generation relies heavily on technology to make their decisions. A study by BankBazaar revealed that 91% of Generation Y prefers making their own financial decisions, but uses the internet extensively for insights and supporting knowledge to make their final choices. This DIY generation is a new-age, high-tech buyer who does their own online research and enters the market well-prepared. While searching for homes, millennials make an informed decision choosing quality. This is the reason why most of them prefer homes from renowned builders, both ready to move and under-construction property.
Being connected to the world has made the millennial generation aware about various environmental concerns and while they may be carefree, they are not careless. They prefer looking for residences that have a lower carbon footprint, are energy-efficient and environmentally conscious. They are willing to go the extra mile for these elements.
As rental rates keep increasing, millennials find home ownership a favourable option as it offers a number of benefits over renting a house. Some of which are as follows:
The money they utilise for rent payment can be used for EMI payments
No interference, and unnecessary terms and conditions from landlords
They can set and adjust the house to their own liking, as this is a restriction in rental homes
The ‘Housing For All’ initiative led to the expansion of India’s affordable housing segment. Aided by government policies on credit subsidies as well as support from Real Estate Regulation Act (RERA) this move has led greater interest in the sector by Generation Y. Attractive options available in the affordable housing segment has influenced more millennials to make the shift from rental housing to home ownership.
The author is Promoter, Goodwill Developers