India is one of the world’s youngest nations today, with more than 400 million millennials accounting for 36% of the total population. The appeal of millennials real estate investors can be gauged from their collective $330 billion+ in spending power. Simultaneously, real estate investing millennials have worked out well for the Indian property market, since the generation has ventured into home ownership way before their earlier generations. A CBRE survey, for instance, has shown that 44% of this segment is looking at purchasing homes within the next two years. At the same time, they have been increasing contributions towards real estate market sales in recent years, taking up 54% of the market in 2022 alone.
There has been a major increase in young professionals and millennials investing in second homes, plots, and villas in holiday destinations and other beautiful locations throughout the country. This has heralded a major shift in the Indian real estate market according to property developers and industry watchers. Real estate is now one of the best investments for young professionals on account of their financial aspirations and experience-based choices.
How Millennials are Reshaping the Realty Sector
Based on property investment insights, more real estate developers and other investors are looking at leveraging this high demand from millennials. This has led to an increase in gated communities and other luxury villa projects as investment options for young professionals in multiple popular zones. Some of them include Manali, Goa, Ratnagiri, Shimla, Ranikhet, Igatpuri, Coorg, Ooty, Munnar, Coonoor, and Kasauli. These second homes are no longer meant as just getaways for family vacations or retirement for wealthy individuals. They are becoming a viable investment for young professionals between 28-45 years of age and they are fueling the biggest demand share for these properties, according to experts.
These are some of the best investment options for young professionals according to industry experts. Based on modern-day investment advice for young professionals, the fractional ownership structure has also made these properties easily accessible and within reach, especially if they are costlier.
Property Investments Become Part of Investment Strategies for Young Professionals
One of the most common investment tips for young professionals today is deploying money into real estate investments for future appreciation and security. These buyers are now emphasizing strategic property choices and are putting financial gains before sentimental associations with their properties. This has reshaped the real estate market in the country since these customers aim to generate secondary income streams via property appreciation and rental returns.
Most real estate developers are catering to millennials and young professionals in large numbers for their luxury holiday home and other projects. This generation is taking to property investments in this category driven by their future investment potential, remote working habits/trends, desire to improve their quality of life, and, of course, their overall lifestyle-related aspirations.
Apart from the above-mentioned locations, demand has also been strong for plots and other properties in other zones like Neral, Alibaug, Anjarle, Ayodhya, and Dapoli. Younger investors have a different way of perceiving second homes and land, with personalisation and flexibility being their major mantras.
Some Other Interesting Trends
When it comes to the millennial-driven real estate market in India, there are some other trends that are also worth noting. These include the following:
● Millennials are more attuned to leveraging the future growth potential of properties.
● They prefer the flexibility to build and design properties based on their preferences.
● They are highly brand-conscious while also preferring app-based tracking and other measures that ensure higher liquidity for their investments.
● Millennials who already own apartments in Bangalore, Mumbai, Delhi, Pune, and Hyderabad are leading the property investment charts, preferring peaceful and tranquil options away from the hustle and bustle of their primary homes.
●This segment of buyers prefers the convenience of ensuring proper maintenance and tracking of their second homes via digital platforms instead of depending on in-person visits.
●Second-home buyers are now tapping market insights and technology to swiftly identify the best opportunities in the real estate market and scale up gains in comparatively shorter durations. This has been observed in their investment habits, right from buying flats in Noida, Mumbai, and other cities to second homes in peaceful locations.
● The freedom to take up remote-working lifestyles has also empowered this segment of buyers to choose flexible lifestyles. This has made second homes more practical choices.
● Many professionals are now choosing to spend a considerable amount of time both at their city homes and second homes with the aim of achieving better quality of life and work-life balance.
Millennials to Keep Influencing Indian Realty Market in Future
The trends highlighted above are only the beginning of a millennial-driven surge in property transactions, particularly in the second and lifestyle home categories. This segment of buyers is here to stay in the Indian real estate market and with the increase in their numbers, developers will increasingly tailor their properties and offerings to sync with their specific needs.
Disclaimer: The contents of this blog are provided by a third-party vendor on behalf of Tata Housing. All rights, including copyright, to the content within this blog remain the sole property of Tata Housing. The information and opinions expressed in the blog posts are those of the third-party vendor and do not necessarily reflect the views or opinions of Tata Housing. While, we strive for accuracy and quality, we do not guarantee the completeness, accuracy, or reliability of the information presented in these blog posts. Readers are encouraged to consult additional sources and exercise their own judgment when interpreting or implementing any information found in this blog. Tata Housing is not responsible for any actions taken based on the information provided in these blog posts, and we disclaim any liability for errors, omissions, or consequences arising from the use of this content.
