India’s real estate market sees a significant shift in consumer demands: 5 important aspects of how millennials are changing consumer preferences
The real estate industry in India is constantly changing. Additionally, a noticeable movement in tastes has been noted, particularly among millennials who are changing consumer preferences.
A recent analysis by real estate consultancy CBRE, which amply demonstrated customers’ growing interest in the luxury housing category, can also be used to assess the mood change. In the first half of calendar year 2023, Delhi-NCR saw the greatest sales of apartments costing more than Rs 4 crore, a notable year-over-year increase of 205%
Accessibility.
In addition to keeping a close watch on sustainability and technology integration, millennials are also obviously deviating from traditional real estate norms in other ways.
The ability to easily access areas of employment, leisure, and public transportation is a major element in millennials’ real estate preferences. The demand for residences located in well-connected neighbourhoods has been fuelled by the desire to cut down on commute times and adopt a more urban lifestyle.
Commenting on this trend Suren Goyal, partner, RPS Group, said that millennials, unlike generations before them, place a great focus on urban life. They find themselves drawn to vibrant, easily accessible neighborhoods that provide quick access to facilities, amusement, and employment opportunities.
“This has resulted in an urban rebirth and an increased emphasis on city centers, leading developers to build mixed-use facilities that incorporate residential, retail as well as office space,” he said.
Luxury Living
Homebuyers are increasingly giving preference to comfortable and luxurious living. This surge reflects evolving choices and a need for a high-quality living experience by the millennials. Luxury real estate investments also yield substantial returns over the long term.
Impact of Technology
The tech-savvy nature of millennials has propelled the demand for smart homes equipped with state-of-the-art technology. Gunjan Goel, Director, Goel Ganga Developments, said that millennials are often regarded as the initial generation of genuine digital natives, and their heavy reliance upon tech has exerted a significant influence on the housing sector.
“High-speed internet connectivity has become a must along with home automation systems that provide ease with energy savings are quite enticing,” Gunjan said.
Sustainable Living
Millennials are also displaying an increasing affinity for environmentally conscious living. The demand for eco-friendly and energy-efficient homes has led to a surge in sustainable real estate options.
Gunjan explained that concern for the environment is important as they look for energy-efficient homes including solar power systems, appliances that are energy-efficient plus sustainable construction supplies. Green areas, communal gardens, and accessibility to public transit are also highly sought.
Diversification
Millennials are notably conscious of their personal finances. They no longer feel the need to be pressured by their elders to save and invest for the future; instead, they are actively engaged in these endeavors. Whether they intend to make purchases for personal use or to generate passive income, they approach their financial planning with a long-term perspective. This approach helps them mitigate the volatility of the real estate market and diversify their investment portfolios says Jetaish Gupta, Founder and Director, Adore Group