The conventional notion till a few years ago was that millennials, with their racy lifestyle and fast-changing jobs around the globe, don’t really have a penchant for homebuying. Their work commitments and an ever-changing lifestyle often didn’t allow these young professionals to tie themselves to a single location and they felt contended with rental options. But then the pandemic hit, and conventions changed.
For those who are new to the term, ‘The Millennial’ are a generation born between 1981 and 1996, and in India, they constitute as much as 34% of the overall population. They are currently the largest single generation in our country, which is why India is termed as a ‘young country.’
The pandemic has diverted the investments of this generation from stocks and mutual funds to real-estate. They have led the demand for home buying in the last two years and accounted for over 50% of house purchases in 2020. This demographic and their requirements are directing the whole course of the housing market in India today. Let’s understand what led to this rise in demand.
What brought the shift?
There’s a stark shift in the mindset, and it is visible in the form of the demand for housing. Instead of renting a house or frequently changing homes, millennials today find it convenient to drop a down-payment and EMIs for their own. The EMIs for most cases equal the amount that this generation would fork out as rent. Undoubtedly, a home is the most stable investment and this fact, with easy home loans, big pay-checks, double incomes has altered their priorities. They are today aiming for bigger and luxurious homes that meet their demands for space and affluent lifestyles.
Changing locations and peripheries
The millennials were the main beneficiaries of the work-from-home culture that the pandemic brought about to light. The restrictions have eased up, and companies are implementing back-to-office programs backed a nationwide successful vaccine program. However, many IT firms and enterprises continue to back remote and flexible work options for their employees. This has resulted in entirely new markets opening up now, as the focus shifted to property size than its location. The previously desirable central locations are no longer as attractive and the demand for homes in peripheral areas that are well-connected to the city is on a rise.
The changing trends have led to the highest demand for larger-configuration homes like 1.5, 2, 2.5 and 3 BHKs. Workspaces continue to adapt and promote hybrid or entirely from home operations, and hence, home offices are still a major draw for millennials. World-class key amenities and lifestyle amenities are also driving the demand.
Health and infrastructure continue to be an important consideration. Millennials are looking for properties in less polluted, greener areas where the local flora and fauna is retained and preserved.
What the future holds?
Millennials will continue to influence the property market, and will remain the single-most-important homebuyer segment now and in the future. With health and property size on a priority, further locations will also become increasingly attractive. Millennials are equally concerned about affordability and look for the best value propositions that their money can buy. They prefer properties with the best appreciation potential at convenient locations.
A generation with information at their fingertips, millennial buyers are scrutinizing the credibility and past track record of developers, construction stage and possession time and other social factors before making a move. They are also taking into account the growth potential of the property and the location. Hence the next two to three years will see the Indian housing sector gear up to meet the needs and desires of this demographics’ needs and desires.
Pyramid Lifestyle’s dynamic foray into Pune’s real estate landscape has added flavour to the vibrant city. A number of landmark projects by the group aim at providing the best property for homebuyers. These homes are built and located to meet the rising demands for space, lifestyle and infrastructure and are the perfect option for millennial homebuyers. To know more about these homes and projects by Pyramid Lifestyle, visit https://www.pyramidlifestyle.com/
References:
- https://www.punekarnews.in/pune-millennials-continue-to-reshape-indias-housing-market/
- https://www.thehindu.com/real-estate/indian-millennials-house-buying-property-investment/article65606602.ece
- https://www.squareyards.com/blog/how-millennials-are-driving-the-housing-market-in-2021-braving-the-pandemic
