Comprising one-fourth of the entire workforce in Asia-Pacific, millennials are changing the market dynamics across countries and sectors, including real estate. Starting their career at an early age, millennials are well-read, well-researched on the current market trends and policies, financially stable and tech-savvy. They not only realise the importance of making a stable long-term investment but also the need to begin early.
A recent report released by national real estate body CREDAI’s youth wing in association with its knowledge partner CBRE titled ‘The Youth Barometer’ reveals that 82% Indian millennials choose to live with their parents. More than 23% of these millennials are likely to move out of their family homes within the next two to five years. The findings also highlight that around one-third of millennials identified investment as the key driver for buying a property. Further, 65% of Indian millennials aim to buy homes without compromising on the quality, size and location with a focus on quality of life. It is expected that the average age of an Indian home buyer is likely to be around 29 years by the year 2022.
So, what makes millennials look at real estate as important investment?
Preparing for uncertainties: While enjoying a comfortable lifestyle, millennials are equally focused on saving and investing. They are aware of the uncertainties that may accompany an economic downturn or other factors that are likely to impact their income in the future.
- Tech-savvy: Millennials have been born in an era of technology. They are extremely comfortable using it and to their advantage. From keeping themselves abreast of the latest developments to making a well-researched and informed decision, millennials make optimal use of digital platforms.
- Security: Buying a house is one of most important financial decisions for all age groups, including millennials. Additionally, they realise that instead of paying rent, they can effectively utilise it for owning a home through EMIs. As a result, they are able to secure their future.
- Life after retirement: More importantly, early investment in buying a home ensures that they can look at a more stable and fulfilling life after retirement. Many millennials look to retire early and pursue their hobbies or develop new interests.
Besides these, some of the other important considerations for buying home include the work-home commute, lifestyle, quality and design of construction, reputation of the builder among others. Moreover, to encourage millennials to achieve their dream of owning a home, the guidelines of the Pradhan Mantri Awas Yojana (urban) (PMAY) were amended. This clearly points to a big opportunity for developers to understand their requirements and offer homes that meet their aspirations.
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