Millennial’s Homeownership Trends
T Chitty Babu, Chairman and CEO, Akshaya Pvt Ltd talking to Realty+ shares his views on the reasons and trends visible in millennial investments in homeownership.
Housing markets across the country have shown a surge in recent quarters, even as the global pandemic has reinforced the importance of security and comforts a home provides. While consumer spending may have reduced in the areas of leisure, holidays, entertainment etc, the demand for housing which is a basic requirement in life has increased.
Times are changing and going by the recent trends, we are witnessing a substantial push in the industry, coming from the millennials. Today’s millennials, between the ages of 25 and 40 – are either entering, or experiencing the most productive parts of their life.
One end of the spectrum is starting to see the benefit of maintaining a positive bank balance and the other end of the spectrum is more or less financially secure, ready to take on life by the horns. Either way, their focus is on how well they can make their money work for them.
From Tenant To Home Owner: Post lockdown, there has been a paradigm shift in sentiments and home buying patterns with the millennials keen on making early investments in homeownership. Compared to two years ago, the millennials are now increasingly interested in buying a home as opposed to renting one. They’ve realised a home loan is a wiser investment than a car loan.
What with the convenience of cab aggregators for daily commute and car hire services for longer trips being a tap away on an app. What’s more, millennials who’re approaching their late thirties are looking to upgrade. The have gone the family way, brought in their parents to live with them and now don’t mind moving from a 1 to 2 BHK or 2 to a 3 BHK. The benefits of a larger space for the family far outweigh the investment they put in.
Moving Back Home: Residential projects in tier cities with competitive prices are proving to be a considerable bet for developers, considering cohesive communities attract good demand among millennials. Branded developers who were concentrated more in the major metros are now viewing smaller cities and towns as great opportunities, as many unorganized players have moved out of the market, thanks to the advent of RERA.
RERA has changed the landscape of the industry and the past success in Tier-I towns can be advantageous in establishing credentials in Tier II-III cities as well. Millennials are also open to ideas of group housing like town homes, row homes, and villaments.
The other significant factor influencing the youth decisions is the Work from Home culture. There is a steady demand for spacious homes and a willingness to shift from inside the city to city peripheries closer to work clusters, for instance, micro markets like OMR and Porur in Chennai. Some of the prominent expectations and attributes that the millennials look for in their homes is based on proximity to their work base, spacious layouts, transport connectivity, and lifestyle features.
Living Turns High Tech: The real estate industry is a highly consumer-driven market and the players need to understand and relate to the millennial mindset and be flexible to the changing patterns. As we move forward, we shall see a rise in the need for personalised spaces, customised designs, and interiors while identity and comfort remaining the key factors in home buying. The shift to suburban living in the lookout for bigger spaces is a rising trend and developers need to focus and recognise the suitable sizes and unit layout plans best suited for millennials’ lifestyle.
We shall soon witness an advanced tech-enabled H process altogether showing close attention to details namely product packaging that includes theme, design, features, and amenities to befit the millennial requirements and futuristic facilities like EV charging points. Today, buying a home has become a highly-invested personal decision rather than just a financial decision, as the millennials look beyond location and price, and dwell on the utility value on offer.