Indias realty sector witnesses marked shift in preferences - 5 key points on how millennials are reshaping consumer choices
Millennials are also keeping a keen eye on sustainability, technology integration among other things which are clearly indicative of a departure from conventional real estate norms.
Real Estate in India News 2023: India's realty sector is continuously evolving. A marked shift in preferences has also been witnessed, mostly among the millennials who are reshaping consumer choices.
The shift in mood can also be gauged from a recent report by property consultant CBRE which clearly showed the rising interest of the consumers in the luxury housing segment. As per the report, Delhi-NCR witnessed the highest sales of apartments priced above Rs 4 crore in the first half of calendar 2023, a significant Y-o-Y increase of 205 per cent.
Millennials are also keeping a keen eye on sustainability, technology integration among other things which are clearly indicative of a departure from conventional real estate norms.
1. Accessibility
Accessibility to workplaces, entertainment hubs, and public transportation is a key factor influencing millennials' decisions in real estate. The desire to reduce commuting times and embrace a more urban lifestyle has driven demand for homes situated in well-connected areas.
Commenting on this trend Suren Goyal, partner, RPS Group, said that millennials, unlike generations before them, place a great focus on urban life. They find themselves drawn to vibrant, easily accessible neighbourhoods that provide quick access to facilities, amusement, and employment opportunities.
"This has resulted in an urban rebirth and an increased emphasis on city centres, leading developers to build mixed-use facilities that incorporate residential, retail as well as office space," he said.
2. Luxury Living
Homebuyers are increasingly giving preference to comfortable and luxurious living. This surge reflects evolving choices and a need for a high-quality living experience by the millennials. Luxury real estate investments also yield substantial returns over the long term.
3. Impact of Technology
The tech-savvy nature of millennials has propelled the demand for smart homes equipped with state-of-the-art technology. Gunjan Goel, Director, Goel Ganga Developments, said that millennials are often regarded as the initial generation of genuine digital natives, and their heavy reliance upon tech has exerted a significant influence on the housing sector.
"High-speed internet connectivity has become a must along with home automation systems that provide ease with energy savings are quite enticing," Gunjan said.
4. Sustainable Living
Millennials are also displaying an increasing affinity for environmentally conscious living. The demand for eco-friendly and energy-efficient homes has led to a surge in sustainable real estate options.
Gunjan explained that concern for the environment is important as they look for energy-efficient homes including solar power systems, appliances that are energy-efficient plus sustainable construction supplies. Green areas, communal gardens, and accessibility to public transit are also highly sought.
5. Diversification
Millennials are notably conscious of their personal finances. They no longer feel the need to be pressured by their elders to save and invest for the future; instead, they are actively engaged in these endeavors. Whether they intend to make purchases for personal use or to generate passive income, they approach their financial planning with a long-term perspective. This approach helps them mitigate the volatility of the real estate market and diversify their investment portfolios.
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