In the recent times post pandemic 85 per cent of the builders reported that millennials were the most active buyer segment.
Property prices reduced by almost 15-20 per cent, most of the governments reduced the stamp duty rates, and the home loan interest rates were at a decadal low.
According to a survey conducted by a leading tech-based brokerage-free real estate platform, 85 per cent of the builders reported that millennials comprised the most active age group (30-40 years) when it came to home-buying activity in 2020.
Shift in mindset of youngsters
Before the pandemic, millennials did not believe in ‘settling down’ with a home purchase. “They found it easier to rely on on-demand services to meet their mobility needs or live as tenants, which gave them a wider range of opportunities. The pandemic changed all that. Further, it must be noted that millennials comprise a major part of the contemporary workforce and they are managing mid-to-senior level roles.
With work-from-home being increasingly prioritised, and more time getting spent within the four walls of home, the desire to stay closer to the workplace or business districts by shelling out hefty rent has reduced.
All-time low home loan interest rates and favourable policies have also triggered a demand among millennials. And with increasing levels of digitisation, the process of property searching has also become easier, thus encouraging millennials.
Making smart choices with the trends
New-age home-buyers are setting aside bigger budgets for spacious homes. As per the survey, the demand for 2-BHK units saw the maximum increase in 2020 at 59 per cent, followed by 1-BHK (22 per cent), 3-BHK (17 per cent), and 4-BHK (two per cent).
With remote working here to stay, many home-seekers are looking for a property in the outskirts as opposed to city centres since proximity to the workplace is no longer a determining factor. Also, buyers have indicated a preference for society living as it gives them a sense of community during a crisis.
The survey also highlighted that the Rs 60-80 lakh range comprised the most sought-after price bracket (24.1 per cent) among new-age home-buyers, followed by those with a budget of Rs 1 crore and above (20.4 per cent).
Buyer preference has shifted towards mid-segment and luxury properties, as the focus now is on the need for separate spaces for work and recreation. Also, youngsters are looking for well-designed spaces fitted with smart interiors that allows them to establish a healthy work-life balance.
In terms of amenities, millennials prefer a balcony and more open space, a nearby park and gym. Also, most married millennials want to invest in (semi or fully) furnished homes.
Eye on the future
Even after vaccinations, new-age professionals might continue to work from home. The financial and environmental benefits of remote working will encourage companies to adopt a hybrid workplace model. We can, therefore, expect millennials to continue looking at home ownership positively.
Our workplaces and homes have integrated, and the value of owning a home has been re-established. Currently, the interest rate stands at sub-seven per cent and it is unlikely that it will increase in the short-to-medium term. Besides, realty prices will also remain stagnant; hence, real estate will continue to be an attractive bet for millennial buyers.
What should millennials keep in mind while buying a home?
- Evaluate the appreciation potential of the area (where the house is located);
- Go for only RERA-approved projects and ensure the builder has a track-record of delivering projects on time;
- Conduct thorough research and speak to people in the neighbourhood where you are looking to buy a house;
- Examine the location carefully and look at the nearby social infrastructure including retail, commercial centres, healthcare, and educational facilities.