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Residential
Introduction:
There are 400 million millennials in India, which is more than the entire population of the United States. The group accounts for one-third of India's population and 46% of the country's workforce. Because they are extravagant spenders, this generation prefers to rent rather than possess their own homes and vehicles. However, because to the pandemic's global disruption, this has changed. The real estate market has changed dramatically in recent years, with millennials playing a significant role. As a result, the number of millennials aged 25 to 40 years old who want to buy a property has climbed dramatically.
Commercial leasing in India is increasing again. In recent months, major corporations and others have landed big-ticket projects. The majority of IT and technology firms are expanding as a result of their long-term growth potential.
Companies and larger businesses are also establishing back-to-office strategies, bolstered by declining COVID cases and a nationwide vaccine campaign that has proven to be effective. We can now fairly declare that India's commercial real estate is on the increase after experiencing reduced demand during the pandemic months.
However, understanding a significant but often neglected factor — the millennial – is equally critical to succeeding in the new normal, or rather, the new reality. With a median age of roughly 28 years, India is a young country. About 65% of India’s population is under the age of 35. Millennials currently make up the majority of wage earners, and their sheer numbers indicate that they will play a significant role in determining the future of commercial leasing in India. Shortly, millennials' preferences and values will be mirrored in commercial real estate in India.
What encourages millennials to buy real estate?
The pandemic has pushed the idea of working from home, and because millennials are spending more time at home than ever before, having a space is more crucial than ever. Having a tangible asset provides millennials and their families with a safe and secure future, as well as income tax benefits. Increased access to home finance alternatives and an increase in disposable income also contribute to their shift in thinking and encourage people to invest in real estate. Millennials feel that their homes are extensions of their personality and that they are much more than just a place to live. Multiple factors, some of which are listed here, influence their home-buying preferences.
Value-added services (VaS):
The modern workplace would include more than just office workstations and conference rooms. It should feature value-added amenities like gyms, play areas, open spaces, and gaming zones to guarantee that employees have a nice time at work. Similarly, the cubicle culture may not be popular. Soft furnishings, which may be altered as desired, would be the way of the future.
Eco-friendly smart offices: Millennials are becoming more open to the idea of eco-friendly workspaces that may lower overall carbon footprint, optimize energy and water use, and support long-term sustainable living.
Developers must concentrate on green and sustainable technologies and innovation in the future. Increased use of water recycling approaches, recycled construction materials, smarter equipment, smart metering technology, and enough ventilation and sunlight should all be part of this plan.
Experiential Retail:
In India, the time for experiential shopping has finally arrived. It is also critical to reinvent and rethink retail with the use of personalization, localization, and seamless integration of technology with retail offers while developing new-age retail. These aren't just marketing fads; they're the realities of today's world.
The number of people visiting malls and high-street retail stores is expected to increase. Buyers, on the other hand, would refuse to open their wallets to make a purchase. They require significant participation and experience. Resting places, ventilation, and natural lighting will all be required in new retail. It will also necessitate adequate testing facilities for products and items (a key differentiator for physical stores and they need to leverage it smartly).
The Rise of Suburbia:
Indian metros are also catching up with the concept of suburbia, in which cities are growing on the edges of towns. Many millennial households are moving to suburbs, often known as suburbia, to avoid traffic and congested living in city centres. The upward tendency is partly fueled by low home prices. To meet the growing demand, these new corridors are attracting additional offices, co-working spaces, malls, and high streets.
Possess a high tendency for long-term financial stability-
Unlike other sectors, investing in real estate provides a long-term benefit because the property's value rises steadily as market conditions change, provides significant tax savings, provides high rental yields, and, without a doubt, with the strict implementation of RERA and other policies, real estate investments have become more safe and secure than any other investment options. Under Sections 80C, 24, and 80EEA of the Income Tax Act, first-time homebuyers can take advantage of many tax benefits on house loan principal and stamp duty, as well as advantages in terms of house loan interest rates and more (up to Rs 5 lakh per annum).
Final Thoughts:
Although the COVID-19 pandemic has had an impact on the real estate industry and the way we live, the increase in millennial demand is directly affecting the real estate market's growth. It is suggested that these buyers consider important factors such as the company's credibility, track record, and other factors when purchasing their future properties
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