Why owning a home suddenly become major priority for millenials? - Ashwinder- Bhartiya Urban
--By Ashwinder R Singh– CEO, Bhartiya Urban
Millennials constitute almost half of India’s population—with a majority of them being salaried individuals with high incomes.
This generation’s consumer habits have always been a puzzle for real estate experts to wrap their head around. Largely influenced by technology, education and modernity, they are highly individualistic. In an attempt to kickstart their careers and reach their financial goals, many shift from their hometowns to IT hubs. Thus, rental accommodations are more suitable for their living patterns.
However, after the rise of COVID-19, these millennials are gravitating towards finding a home they can call their own and steering clear of rental accommodations. So what has changed? What made them change their perspective?
With everyone spending more time at home than ever before, the need to invest in a space that looks after your every need is more apparent now. The pandemic has created a need amongst millennials to find a place of their own and a sense of security that adds value to their life.
This need for a secure future has resulted in a change in their mindsets. Initially driven by the flexibility of changing jobs and shifting to IT hubs for better job prospects, now home-buying decisions for millennials are driven by the need to have more than a roof over their head. Apart from a sense of security, with ‘work from home’ becoming the new normal, millennials are investing in homes in their hometown without a second thought as people are looking to live close to family members and friends during these uncertain times.
Another important factor that has helped drive millennials to invest in their own properties is the lowering of mortgage rates due to the adverse effects of the pandemic. With the rates going down, the trajectory of sales has gone up. With greater access to financing options for homes, millennials are driven to invest in homes they can call their own while also being mindful of their finances.
In addition to a sense of security and lowered rates of mortgage, the increased use of digital mediums as a means of promotion and sales has helped this tech-savvy generation lean towards getting a home of their own. With physical on-site visits halted, many real estate developers are turning towards virtual tours to attract consumers. This has also proved to be a major influencer in driving millennial sales.
With multiple options in the market of smart homes as well as modern architecture, real estate today is well-suited for this generation. With the expansion of cities due to rapid urban development, there are homes available for everyone in prime locations equipped with modern, state-of-the-art amenities. Real estate developers are also crafting projects that will exponentially grow with time, that makes it a perfect investment for millennials.
Staying at home for an extended period has resulted in millennials being more mindful about the space they’re living in. They have started paying more attention to the amount of space and the amenities homes have to offer. Gone are the days when 1-2 BHKs were the ideal space for millennials, now they are looking for a home that will give them more value for their money, a home that is equipped with adequate space to cater to all their needs. With an array of qualifications and high incomes, they are financially stable to invest in luxurious spaces that have ample space. They have now shifted towards a convenient life rather than style.
Another driving force are the government initiatives that have come into place. With the ‘Housing For All’ initiative, home ownership has become more millennial friendly, offering them favourable government policies on credit aid and the assistance from the Real Estate Regulation Act (RERA).
With all these factors playing right into the hands of millennials, there has been a significant upsurge in millennial sales when it comes to the real estate sector.