They say they are sick of the millennials and their attitudes, always walking around like they rent the place!
But the recent transformative shift has led millennials to not only rent places but owning them by investing in real estate. Working as a driving force to change lifestyle preferences by reshaping the landscape of property buying.
Millennials, born between 1981-1996, have come of age in an era of rapid technological refinements and globalisation. This has influenced their aspirations, priorities, and expectations, including their approach to real estate. This is the fastest-growing group of all age groups, not only in terms of technological changes but also financially and socially. A study has also found that this group’s household rates are comparatively higher than any other age group. In Western countries, a major hike in real estate investment rates has increased, with all buyers aged under 36 years to under 41 years of age.
India, following this culture of having joint families living together, on the other hand, has a different picture. However, the pandemic has left us thinking about investments and saving funds. Due to the economy being affected drastically, the drop in interest rates assisted in realising and making an effort towards personal growth in millennials. A research study by PEW says that 52% of adults aged between 18-34 live with their parents since the pandemic hit the world. The study also showed that only 46% of millennials are married compared to 83% of the silent generation.
“The legendary milestone of a millennial: I finally moved out of my parents and moved in with my partner. The parents were supportive, too. They even let us bring food upstairs.”
One of the significant trends observed among Indian millennials is a change towards urban living. They are drawn to vibrant cities offering diverse education opportunities, career growth, and cultural experiences. As a result, metro cities like Mumbai, Delhi, Bengaluru, and Chennai have witnessed a surge in demand for residential and commercial properties.
Additionally, millennials have a preference for flexible and contemporary living spaces. They seek modern amenities, eco-friendly features, and community-centric environments that foster social interaction. Developers adapt to these evolving demands, creating innovative projects that cater to their needs, such as co-living spaces, smart homes, and mixed-use developments.
The impact of millennials on the Indian real estate market is not limited to residential properties alone. They also drive the demand for commercial spaces, especially in the emerging startup ecosystem. With their entrepreneurial spirit, millennials are establishing new businesses and coworking spaces, fueling the need for flexible office solutions and fostering economic growth.
The post-pandemic scenario has further accelerated millennials’ interest in real estate. The pandemic has highlighted the importance of owning a home and having a secure investment option. With the prolonged work-from-home culture and the desire for personal space, millennials are reevaluating their housing choices and prioritising comfort and convenience. This has increased demand for spacious homes with dedicated workspaces and access to outdoor areas.
Historically low mortgage interest rates influence millennials to invest in real estate. The favourable lending conditions have made homeownership more accessible and attractive. Recognising this, financial institutions have introduced customized home loan products and flexible repayment options, further incentivising millennials to invest in properties.
Furthermore, the rise of digital platforms and property portals has empowered millennials with easy access to property listings, virtual tours, and online documentation, simplifying home-buying. The availability of detailed information and data-driven insights allows them to make informed decisions and compare multiple options at their convenience. According to a 2017 National Association of Realtors report, 99% of millennials have used the internet for information about the home-buying market. It may seem obvious, but this number is almost double that of baby boomers using the Internet to find homes.
The active participation of millennials in the real estate sector is redefining the dynamics of property buying and investing in India. Their preferences for urban living, modern amenities, and community-driven environments are reshaping the architectural landscape.
Indian millennials, with their changing lifestyle preferences and post-lockdown mindset, are playing a pivotal role in driving the country’s real estate sector. Their demand for urban living spaces, emphasis on modern amenities, and focus on homeownership are reshaping the market and influencing developers’ strategies. As the nation moves forward, the active involvement of millennials in real estate is expected to shape the future of India’s property landscape.
