The Indian millennials will likely be strong buyers who drive the real estate market and demands in 2022 and a few more years. The real estate market of India is influenced by the demand for housing by the millennial generation.
The millennial generation is the term given to the people born between the years 1981 to 1996. In a country as vast as India, the millennials are tons in number. About 34% of the population is constituted by the millennial generation, i.e., 440 million. And when the huge population decides to invest in real estate, the demand will surely increase by a huge number.
The sudden change and increased housing demands made their way into the market during the COVID-19 pandemic. The period was tough, and most millennials rented out a space to live. However, the pandemic hit the world and the cash flow was disturbed, which led to hardships in paying the renting amount for everyone.
The real estate market thought the trend of increased housing demand in 2022 came into force due to the work from home (WFH) policy. They also believed that the millennials would return to their older selves after the policy ends, but the trend continues to dominate the housing demands.
This generation is not the sudden investors and is driving the market. Since they are in their ‘buying years’, with established jobs and access to loans, they are more likely to invest in real estate. In 2020, millennials’ housing demand and buying activities accounted for 50%, a huge number in a short period. The investing activities of this generation will direct and influence the real estate market in the long term.
What are Millennials Looking for Before Investing?
The new generation is on a constant lookout for housing in close prominence to their workplace. This increased the close format construction of projects, especially near the major IT hubs of India. The millennial generation will influence the housing demand by 2022 by opting for a large configuration of spaces of 1.5 BHK to 3 BHKs. Apart from WFH being in action, the generation also looks for spaces where they can operate and work smoothly without any hassles. World-class key amenities also play a major role in driving this generation’s demand for real estate investment.
Another housing demand aspect for investment by the millennials is smart homes. Being tech-savvy, the buying generation will invest in homes that provide them with utmost comfort and convenience along with digital authorisation. Green homes with eco-friendly features get more investment than other real estate projects.
In contrast to before, the millennials prefer to live in peripheral localities instead of central ones. Additionally, these localities should have good connectivity if nearby roadways and facilities are available. Nevertheless, the entertainment options should not be left behind too. Healthcare is another major factor this generation looks for when investing in housing or other real estate properties. A less polluted locality with greenery around is what the millennials look for while investing.
In the long term, it is clear that the changes that came with the pandemic are here to stay for a long time. One thing that this time taught the generation to look upon is their quality and quantity of lifestyle. Unlike the pre-pandemic period, where this generation preferred long commutes, the post-period housing demand, will be heavily influenced by the millennial generation. Also, unlike every investor, this generation focuses on affordable housing at the same time.
see also – How millennials are driving the housing market in 2021, braving the pandemic?
Stability of Investment
The housing prices and the interest rates on home loans are rising, which may lead to a narrowed-down investment by millennials compared to 2020. However, in the long run, the mutual fund or share market has not regained its stability like the real estate market.
The generation knows that real estate demand and investment is the safest investment and, therefore, will not put a full stop to their outlays. In the coming two or three years, the real estate market will fully regain momentum, and the major reason behind real estate demand will be the millennials.
All upcoming home construction will be focused on satisfying the demands and preferences of this significant group. This frequently requires developers to alter their plans.
However, the real truth of the property market demand is that availability always comes after demand. For a while, real estate project developers in India will be dictated to by millennial demand.
