Gone are the days when millennials were seen as the nomadic generation, hopping from one rental to another, free from the constraints of a home loan.
Today, these tech-savvy, avocado-loving individuals are swapping their landlord’s keys for their own, stepping boldly into the world of homeownership. As millennials hit life’s traditional milestones, buying their own abode has never been stronger. From eco-friendly features to integrated smart home systems, millennials demand more than just four walls; they desire a space that encapsulates their individuality.
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A Homeowner or A Tenant?
Fueled by a desire for financial freedom and an entrepreneurial spirit, these young adults are making smart moves on the real estate chessboard. They’re investing in properties, becoming landlords, and reaping the rewards.
While some Millennials choose to be homeowners, others prefer the flexibility of renting.
As per the Anarock Consumer Sentiment Survey, a whopping 81% of millennials in India were looking to buy a home in 2022. But why are millennials ditching rent receipts and choosing house property agreements instead?
What are these reasons? But before that, how millennials function is a discussion of its own.
Minimalist Lifestyle
Millennials are trading sprawling mansions for cosy, minimalistic homes. Why, you ask? Because minimalism equals freedom. It’s about uncluttering not just physical spaces but also their mental landscape. They’re discarding the old script of accumulating stuff and writing a new one that values experiences over possessions.
So, you’ll often find them in decluttered homes, relishing the zen-like tranquility, free of ‘stuff-o-cation,’ and living their best Instagram-worthy minimalistic lives. Now that’s millennial magic
Source: Facebook
This house is decorated with soft arches and calming colours for a couple and their son by Thomas Parambil Architects
Tech-Savvy in Nature
With their smartphones in one hand and the world at their fingertips, millennials are redefining the housing market with a tech-savvy and minimalistic approach.
These homes are not just about sleek lines and clutter-free spaces; they’re about marrying style with functionality. From voice-controlled lighting to app-regulated temperatures, these homes should be the perfect blend of technology and comfort.
It’s like living in a home that’s just as smart, efficient, and progressive as they are! Now, who wouldn’t swipe right on that?
Commitment to Sustainability
Many millennials are eco-conscious. They prefer renovating with sustainable materials, energy-efficient appliances, and creating green spaces, turning their homes into earth-friendly havens.
Young adults are actively looking for such features that help build a better future for generations to come. A recent example would be a millennial couple in Mumbai who transformed an old, 3BHK into a lush, plant-filled oasis.
Source: Architectural Digest
Charm of Renovation
The enthusiasm for reusing property is only found in millennials! They love to add a personal touch! Renovating gives them a blank canvas to express their style and creativity. It’s like giving their Spotify playlist a physical form – each room has a different vibe.
INCO has helped many such young adults create spaces that offer a blend of history and modernity.
How are Millennials Reshaping the Realty Market?
The dominant force in the homebuying landscape are millennials. Recent statistics paint a clear picture of their impact, with Millennials accounting for over 45% of all homebuyers in the past year alone. Their preferences and behaviours are driving significant shifts and shaping the future of the market.
And what are the reasons behind this? Let’s get into it!
Remote Work and Home Buying
The rise of remote work has opened up a world of possibilities for Millennials, allowing them to choose homes and locations based on their lifestyle preferences rather than proximity to their workplace.
| DID YOU KNOW?
As per a study by Stanford University, working from home led to a 13% increase in productivity in March 2020, prompting many millennials to invest in homes with dedicated workspaces. |
With IT hubs like Bangalore and Hyderabad growing, the Economic Times reported a 20% increase in home purchases among millennials in these areas, driven by the remote working trend.
They are increasingly seeking homes in suburban areas, coastal towns, and even rural retreats, prioritising spaces that offer a balanced lifestyle and a closer connection to nature. This shift has led to a surge in demand for properties with home office spaces, high-speed internet connectivity, and flexible living arrangements.
Financial Portfolio – Property Investment Plans
With a keen focus on homeownership, building wealth through real estate investments is quite a big goal for millennials. Low-interest rates and favourable market conditions have increased opportunities to invest in properties as an additional source of income and long-term financial security.
The story of Antariksh and Ankita is a well-known one in Mumbai, covered by ET. They earn a combined monthly salary of Rs. 4.59 lakh while working in Mumbai. They have a loan of Rs 1.65 crore and are making monthly payments of Rs 1.3 lakh for their own home, which is worth Rs 2.7 crore.
Driving the Surge of Tech-Enabled Home Trend
Millennials are at the forefront of the revolution of the smart home. With their deep-rooted tech-savviness and appetite for innovation, they embrace tech-enabled homes that offer convenience, security, and sustainability. From voice-controlled virtual assistants to energy-efficient appliances, Millennials seek properties equipped with the latest smart home technologies. This surge in demand has led to a rapid increase in the adoption of smart home features, with a projected market growth of 20% by 2023.
| DID YOU KNOW?
A survey by IKEA revealed that almost 80% of the millennials in India prioritise having high-speed internet in their homes over other amenities. |
Millennials Popularise Prop-Tech Homeownership
Born into the age of the internet, millennials are comfortable with technology. They’ve embraced PropTech (property technology) solutions in their quest for homeownership, leveraging online platforms for everything from property searches to virtual tours. Here’s how Millennials have contributed to the rise of prop-tech:
- Virtual Tours and 3D Visualisations: Millennials value immersive experiences when exploring properties. The demand for virtual tours and 3D visualisations has surged, enabling them to remotely view properties and make informed decisions without physically visiting each location.
- Streamlined Transactions: Who doesn’t appreciate the ease and speed of digital transactions? Millennials definitely do. Prop-tech solutions, such as electronic signatures and online document management platforms, have simplified the buying and selling process, reducing paperwork and enabling seamless transactions.
- Data-Driven Insights: Prop-tech provides access to comprehensive market data, analytics, and predictive modelling tools. This in turn empowers them to make informed choices based on real-time insights and market trends.
Are there Any Differences Between Millennials and Gen Z as Homebuyers?
While Millennials and Gen Z share a tech-driven approach to homebuying, Millennials tend to focus on sustainability, long-term investment potential, and a balanced lifestyle, whereas Gen Z prioritises personalisation, affordability, and vibrant urban experiences.
Understanding the nuances between these two buyer groups allows real estate professionals to tailor their offerings and services to meet the distinct needs of each generation.
| Aspects of Difference | Millennials Homebuyers | Gen Z Homebuyers |
| Tech Adoption | Embrace technology-driven solutions, leverage real estate apps, and utilize digital platforms for seamless home buying experiences. | Being digital natives, Gen Z integrates technology effortlessly into their home buying process, utilising virtual tours and online research extensively. |
| Personalization Preferences | Seek homes that align with their unique lifestyles and values, focusing on amenities like eco-friendly features and integrated smart home systems. | Prioritize customization options, seeking properties that allow them to personalize their living spaces, such as flexible floor plans and customizable design elements. |
| Financial Considerations | View real estate as a long-term investment, seeking stability and potential returns through homeownership and real estate investments. | With a focus on financial prudence, Gen Z approaches homebuying with careful consideration of affordability, seeking budget-friendly options and exploring shared ownership models. |
| Location and Lifestyle | Embrace flexibility in location choices, gravitating towards suburban areas, coastal towns, and rural retreats, prioritizing a balanced lifestyle. | Seek vibrant urban environments that offer proximity to amenities, entertainment options, and diverse cultural experiences, aligning with their desire for an active social life. |
Happy Endings for Millennials’ Homeownership
In India, millennials are shifting the contours of homeownership with their distinct tastes and values. Driven by financial security and space for self-expression, they’re buying homes earlier. They’re going green, integrating tech, and creating cosy, work-from-home nooks. Skipping the suburbs, choosing bustling city life instead, and treating homes as extensions of their digital-savvy, eco-friendly lifestyles. Millennials are redefining what ‘home sweet home’ means.
Despite the challenges, the millennial mantra for homeownership in India is clear: A home isn’t just an investment; it’s a reflection of their unique identity!
If you are looking to buy your first home, trust Square Yards to find the perfect property that fits your millennial lifestyle!
