Nowadays we live in a connected world, and this is causing interference in the real estate sector. This interference is caused mainly by millennials who are redefining what it means to live and work. “Shared economy” is an emerging concept in the Indian market, and the future of Indian real estate looks promising. From an “ownership” centric market, India is slowly transforming into a “sharing” centric market. While the idea of “sharing” is more prominent in the transportation sector, it has recently gained some friction in commercial real estate under co-living and co-working.
This change in the Indian real estate services is caused mainly by millennials and their rising numbers. In a survey conducted in 2018, it was found that millennials made up about 42% of the total workforce in India’s biggest cities (Hyderabad, Bengaluru, Pune, Kolkata, Chennai, Delhi NCR, and Mumbai). 40% of these millennials are migrants to these cities and have limited money to spend, and as such, they value convenience and flexibility.
How Millennials are investing in Indian Real Estate
The real estate sector in India is a vital part of the economy. In 2017, it constituted 6-7% of the GDP and this is expected to rise to 13% by the year 2025. By the year 2030, Indian real estate is expected to be the third-largest real estate industry in the world and millennials will play a vital role in this meteoric rise. Surveys have revealed that Indian millennials consider buying a house for themselves as a long-term investment and a dream they need to fulfill. Investment in real estate services is quite popular among millennials.
Buying for the future
Millennials in India prefer to make their investments in real estate services thinking about the long-term prospects. They want to invest in a property where they can live without paying rent and still retain ownership of the property in the years to come.
Millennials want to invest in properties that they can sell off for decent money in the event of an economic crisis. For this reason, they prefer to buy real estate which is easy to liquidate and has a lower lock-in period. Commercial property agents and real estate brokers provide assistance in knowing more about such properties.
Millennials are less likely to invest in multiple real estates and instead concentrate on buying one that serves their purpose. Millennials tend to limit their spending and if they have already invested in real estate, they are likely to diversify their investments rather than splashing their money on multiple properties. For advice, they often get in touch with the top real estate agent brokers in Pune.
Millennials have a busy work life, and so they want to invest in residential properties that are close to their workplace to save some time on traveling.
Millennials are generally known to have a lesser amount of patience, and they do not prefer to wait too long for returns. So instead of investing in properties that can give them slow returns on a long term basis, they prefer to invest in those that give them quick returns.
Looking for like-minded investors
Millennials look to invest in those properties which have already been invested in by like-minded individuals working in similar professions and domains.
While investing in a property, millennials place much importance on the energy dimensions of the place. They wish to live in an environment which is comfortable and which enhances their productivity. Young parents and young mothers must deal with the fast track world and the never-ending demands of their children, and as such, they wish to invest in a place that gives them a sense of well-being.
Every project emits some kind of energy, and for millennials, this is instrumental in making the decision of whether to invest in that project. This is of great importance to them since they prefer to live in an environment that matches their intensity.
Millennials are more concerned about the environment and they want to make sure their children grow up in a safe and secure world. This mentality influences their decision making while investing in real estate. Not only do they concentrate on going green and plastic-free, but they also want to live in an environment surrounded by nature. Thus, they tend to invest in those properties which have a lot of greenery nearby, in order to play their part in protecting the environment.
Millennials are displaying a trend of going for the more affordable options in the market. A survey revealed that only less than 5% of millennials wish to buy a home that costs more than 1 crore rupees. A property priced less than 40 lakh, is preferred by 39% of millennial investors. 44% of them responded that they would go for homes priced between 40 to 80 lakh rupees, while only 13% said they would prefer a home in the price range of 80 lakh to 1 crore rupees.
Social Media and Technology
The millennial generation relies heavily on technology to help make their decisions. A recent survey conducted on millennials revealed that 91% of them prefer to make their own investment decisions, after consulting the internet for knowledge that supports their decision. In this new age, millennial buyers do their own research before venturing into the world of real estate. Before investing in a property, they are likely to gather information about the buyer through the real estate brokers and buy only from well-known builders.
Millennials are known to place much importance in work-life balance, holistic living, and mental health. As such, millennials prefer to live in open spaces that allow them to live a socially active life, which doesn’t suffocate them. They also want to live in a place that is spacious but without the inconvenience that comes with managing a big mansion. As a result, multi-functional rooms are generally preferred by millennials. Smart homes with smart technologies are on the rise because of the demand created by millennials. Property management services Pune have confirmed these trends to be accurate.
Millennials constitute a major part of the workforce in India, and with their knowledge of technology, they are acting as core demand determinants in the Indian Real Estate market.