How Has The Generational Shift Affected The Home Buying Process?

One can witness a complete evolution in the spending habits of millennials when compared with those of the previous generation. With evolving work cultures and better career prospects, millennials are privileged with higher disposable incomes and access to finer amenities. As a result, millennials and young homebuyers are choosing to invest in real estate early on in their careers to secure their future.

Here are some definitive ways in which the home buying process has evolved with the new generation.

1. Millennials are the primary investors in real estate: It is estimated that by the year 2020, 65% of the Indian population will be under the age of 35. The rise of millennials in the workforce has reshaped the real estate sector, as these buyers have higher purchasing power than ever before. The needs and preferences of millennial homebuyers are now redefining the real estate sector and housing projects in a big way.

2. The rising demand for luxury properties: A large segment of millennials in the cities stay with their parents at least until they get married. At the same time, they are earning much more than their parents did at the same age. The combination of these two factors has driven the new generation’s demand for luxury properties that match their lifestyle preferences and aspirations.

3. Investment in properties with scope for growth: A large number of homebuyers in India today are in their 30s and 40s (which was not the case with the older generations—they had to save up for several years before they could invest in a home), which offers them a longer investment horizon. For this reason, millennials are on the lookout for projects that are bound to appreciate well over the years—even if they are not in great demand today.

4. Bigger home purchase budgets: The rising incomes and growing purchasing power enable young homebuyers to think beyond restrictive budgets. If there is a project that offers them a luxurious lifestyle experience or is very close to their place of work, then millennials are willing to forego their budget in favour of comfort and convenience.

5. Preference for recreational and lifestyle amenities: Unlike the older generations, the homebuyers of today aren’t simply looking for a roof over their head. They are looking for a holistic living experience that is complemented by a range of recreational and lifestyle amenities. These homebuyers look for amenities like a swimming pool, gymnasium, clubhouse and sports facilities in the projects that they explore.

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