There was a time when the younger generation use to spend on nightlife, shopping & clubbing as that was the way for them to live the life to the fullest.
Dr. Mohit Ramsinghani
Post covid things have changed with the focus being on life’s basic need food, clothing & shelter. Covid made all of us know the need for a home. Millennials are people born between 1981 and 1996, and in a young country like India, that is a lot of people. Millennials constitute as much as 34% (or 440 million) of India’s overall population, making them the largest single generation in the country.
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The Millennial thinking now is changing with the post pandemic life, making them the key drivers for real estate. With the stock markets being uncertain & other avenues of investment not providing great returns, there has been a paradigm shift of the Millennial mindset towards buying a home as it is not only a good tangible investment but also a home for individual’s needs. The preference of renting over buying has changed & the fact of owning a physical asset has also made the decision-making prompt to buy a home post Covid.
Housing is evidently the most stable investment, and millennials will not stop buying homes. For those whose budgets are stretched, further locations will become increasingly attractive as long as they have sufficient connectivity, and the projects have enough comforts. Millennials will also look for the best value propositions that their money can buy and prefer properties with the best appreciation potential.
The new generation is on a constant lookout for housing in close prominence to their workplace. This increased the close format construction of projects, especially near the major IT hubs of India. The millennial generation will influence the housing demand in 2023 by opting for a large configuration of spaces of 1.5 BHK to 3 BHKs. Apart from WFH being in action, the generation also looks for spaces where they can operate and work smoothly without any hassles. World-class key amenities also play a major role in driving this generation's demand for real estate investment.
Millennials really like to expand their living spaces beyond the confines of their residences to include outdoor areas. They like to take advantage of fantastic areas for breathing fresh air and optimising space, such as rooftop gardens, decks, and so on. They choose key elements like neatly organised portions with little dead space, magnificent architecture, and quirky style that delivers more comfort to the client when used. They are also looking for modern amenities, whether they are inside amenities with their own distinct features, such as a barbeque or an internal jacuzzi, or outside components dedicated to spacious entertainment, such as a gym, clubhouse, multipurpose party hall, swimming pool, movies theatre, and so on.
In early 20’s when a Millennial starts earning to their advantage is the age & the income at which they start is averse to keep on increasing year on year making them more suitable to buy and invest in a home.
For example, a Millennial at his early age with no major commitments:
Monthly Earning - Rs 1,00,000/-
Buys a Compact 2 BHK in Thane (Approx Cost) – Rs 78,00,000/-
Home Loan Amount – Rs 70,00,000/- (@ 8.4% for 20 years)
Home loan monthly EMI – Rs 60,000/-
For Millennials the advantage is as they start early, initially they are paying up to 50% of their income toward the Home Loan EMI but as they are young, the income will keep on increasing and the home loan contribution percentage from their overall income will keep on reducing as their salaries will increase with experience & also allowing them to save more & prepay the home loan & also simultaneously the Home Asset acquired value keeps on appreciating with them making a more secured home asset for life.
With the target audience being enhanced and new community of Millennials being introduced, the real estate developers have also enhanced their product features, matching the new audience segment needs. The developments are now planned with a list of amenities like modern club, green spaces, jogging tracks, in house dining, concierge services, convenience stores & various other amenities to match their needs.
The covid has made Millennials the key drivers of real estate & thus home ownership has become the first priority for individuals.
Linkedin Page: https://www.linkedin.com/in/dr-mohit-ramsinghani-6890038/?originalSubdomain=in
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