As we step into another year with big hopes and dreams, there are some significant shifts in the real estate industry that have been witnessed. It is very much evident that the patterns of ownership have changed drastically over the last couple of years. According to the Economic Times report published last year, 34% of the home buyers in the year 2017 were between the age 28-35. For several years, it was considered that this certain age group has little or absolutely no knowledge about the real estate industry and its functionality. However, this seemed to have changed drastically.
So, the question of the hour that needs to be addressed is that what changes made the millennial (a term used for people born between 1980-1995) become interested in a sector that was otherwise considered alien for them? The one-word answer for this question would be- THE NEED.
The millennial population, also referred to as the Generation Y comprises the largest percentage of the population in the entire globe as of now. This percentage is biggest in the history of human population. It is also undeniable that this generation is significantly characterized by strong self-confidence, affluent knowledge about technology, high level of education and smooth interactive social connection.
It was never before that the real estate had to deal with a customer base like this, and this is baffling the sellers. It might be the reason that the property builders and sellers are altering their values according to the needs and demands of the Gen Y. thus, the real estate market has become an excellent indicator of the millennial mindset.
Let us look at the ways that the millennial are changing the dynamics of the real estate industry. This analysis will also help us understand what exactly this generation is expecting from the market.
- Extensive well-done research– Millennial are known to the new tech-worms. Hence, it is but obvious that for something as big as investing in the real estate market, the Gen Y bases the decision on the extensive social-media report, if not solely.
- Take time– One who does an extensive research to come to conclusion and zero down on an idea, take their own sweet time to come down to a conclusion. Gen Y is never in a hurry to come to a decision.
- Knack for amenities– Unlike the older generation who had the privilege to buy/build villas and live independently, the millennial do not have the same amount of time, energy or money to do so. So most of them are investing in apartments, however the wants have stayed the same. Millennial have varied demands from the houses they buy. Thus, only a house with multiple amenities attract the new age home buyers.
- Different view– Also, the new generation investors look into their house as more like a status symbol than an investment. This explains why most millennial are going out of their way to stretch their budget and buy properties only from reputed builders.
- Residency status– A half of the millennial buyers who invest in a house are either single or living in a nuclear family. This change in the residency status of houses have resulted in a major change in the floor plans of the builders as well. The interiors are quirky and the houses are more vibrant and funkier than how they used to be some decades back.
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