Millennials driving demand for luxury realty

What do millennials want? A sustainable lifestyle that balances luxury, modernity, safety and is an excellent return on investment. These aspirations have sparked off the real estate boom in new age India where millennials are increasingly investing in integrated townships because all these needs are met under a single roof. This new trend has further accelerated post pandemic wherein many investors and homebuyers realised the need to balance their work and family life in greener, secure and technologically sound spaces. Essentially it’s about having an aspirational lifestyle that meets all needs in one go.

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A global survey conducted by real estate experts CBRE shows that 44% of young Indians are keen on buying a house in the next two years – which is a much higher percentage than the rest of the globe. They have contributed to over 50% residences bought in 2020. The same report indicates the might and power of the millennials who are a big factor as a major driver in the Indian real estate market, crossing 54% in 2022.

Preferred locations and budget

The Delhi-NCR region is riding high on preferences for the millennials. This location which is close to the country’s Capital, not only offers rich employment, educational, entrainment and recreational opportunities but also has something for everyone on the real estate landscape. But the real estate choices are not just limited to this region alone. Now, Tier-2 cities such as Dehradun, Lucknow, Chandigarh, Zirakpur, Jaipur and others are also popular real estate choices for millennials.

Best cities for millennial homebuyers

There are several factors which the millennials take into consideration while purchasing their dream homes. Some of the cities that are in demand by millennials are Hyderabad, Ahmedabad, Pune, Thane etc.

Statistics also strongly indicate that millennials constitute 36% of the Indian population and interestingly, they are unwilling to settle in traditional patterns of investing or buying when it comes to real estate. Rather, they are incredibly clear headed and foresighted and see investing in luxury real estate such as integrated community living as a very good investment option in this dynamic age where pink slips can happen anytime and anywhere. They are looking for comfort, security and also energy efficiency by deploying smart etch solutions and usually, luxury townships and real estate has offerings in that space.

Key millennial choices: Connectivity, community living, health, smart homes, sustainability

With the world drawing closer and a complete breakdown of geographical barriers during and post pandemic, the millennials are more ready than ever to invest in luxury homes, of their choice. Increased salaries and digitisation, virtual leap of the real estate market—which enables access 24×7—aspirational choices and diverse offerings by India’s leading real estate giants has spurred this trend wherein millennials are aggressively investing their savings and earnings in luxury real estate.

Sustainability, smartly designed homes and integrated townships with state-of-the-art technology, access to top end recreational and healthcare facilities besides a robust infrastructure that houses everything from home automation, smart traffic management, high end security, retail, commercial, educational, banking and other services are a huge draw for the millennials. Post pandemic most of urban India is veering towards a healthier lifestyle and the willingness to spend more time with family by enabling ‘smart work mode.’ This also means that as ‘work from home’ situations have become the new normal, the millennials are looking at a one stop platform to provide everything.

Pan India, traffic has increased and while many traffic management systems are addressing this problem, the situation is quite stressful in big cities. An integrated township also provides seamless access to everything, saving on long and anxiety ridden commutes across the city and also gives a better quality of living.

Carefully crafted and designed architecture that houses greens both indoors and outdoors, an opportunity to try different sports by taking training from trained and professional sports instructors in games like golf, tennis and more are quite attractive for this segment of homebuyers. While there is a sizable section of millennials who are working away from their hometowns and cities, community living that is offered by luxury integrated townships has its own appeal. It gives a sense of community living as diverse residents throng together to celebrate events, festivals and other common occasions. Therefore, immersive experiences and community living are the other big draws for millennials to opt for luxury housing segments.

(The author is COO, Wave City.)

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CJ Singh

CJ Singh is the COO of Wave City. With an MBA from the University Business School, Punjab, he has held significant positions in companies such as Berger Paints, Shalimar Paints and SABMiller in the past. He stands out for his expert marketing and managerial experience in the real estate domain.