The real estate market in India is experiencing a significant shift due to the influence of the millennial generation
India's millennial generation, which constitutes 34% of the country's population, is redefining the real estate market. They are a moneyed lot with greater access to education and job opportunities than the previous generation and are more aspirational. Despite a culture of saving for the future, the millennial generation is investing heavily in real estate, with a recent survey indicating that nearly 75% of them plan to invest in real estate over the next three years.
One of the primary reasons for this trend is the Indian culture of valuing land ownership and viewing it as a matter of pride and an extension of one's personality. Millennials view owning a physical asset like land as a source of long-term security and a surety in times of unexpected calamities. Moreover, they spend large sums on education and marriages, which makes a physical asset like a piece of land a practical investment, considering that its value only appreciates with time. However, millennials' approach to land ownership and the concept of an 'ideal' home is vastly different from that of their parents. The aesthetics of living space are of paramount importance to them. They are open to experimentation and receptive to fads and trends, with a flexible budget to explore and adhere to values. They prioritize themes, a wide choice of raw materials, and an array of colour palettes, unlimited decor and furnishing options, which give them a wide range of choices.
The concept of a home is far more inclusive than earlier, and outer open space is as important as inner space. To ensure access to natural sunlight, fresh air, and maximum greenery, balconies, patios, and terraces are planned right at the design stage. A garden, a home theatre, a workout space, a study space, a reading space, a swimming pool, play area are just a few options that redefine the functionality of a home. Millennials prefer apartment blocks with amenities within the complex itself, such as a gym, basketball/ badminton courts, grocery and vegetable stores, mini theatres, medical stores, and even a clinic, as convenience is a mantra they swear by. They also expect the community living space to be pet-friendly.
Easy access to essentials, fashion, entertainment, and people is the primary driver for millennials. They are attracted to properties in good neighborhoods featuring open green areas and facilities such as hospitals, educational institutes, banks, shopping complexes, etc. within easy access. The residential and spending habits have changed the face of cities.
The millennial preference covers the entire spectrum. While some go for quirky spaces, others go for contemporary elegance; some fancy smart homes, while eco-friendliness is the crux for others; apartment complexes for maximum security and community interaction is a choice, unbridled freedom, and complete privacy is also a choice, not to forget the hybrid gated communities. They are also investing in farmlands, building farmhouses, and vacation homes. These changing preferences are making the real estate market a great opportunity for players in the space.
The new generation opts for spacious, bigger homes as they are spending more time in their homes with their loved ones. Also, with ‘work-from-home’ becoming the new norm, they like to have a separate workspace. While millennials also crave experiences like travelling and pursuing hobbies, let's not forget that home itself has transformed into an experience even as we see a resurgence of family values.
The real estate market in India is experiencing a significant shift due to the influence of the millennial generation. This generation is actively investing in real estate, but their perspectives on land ownership and the definition of an 'ideal' home are considerably different from those of previous generations.
(The author is CEO and Founder of Legend Siroya Realtors)