Affordable housing: Why this is trending with millennials
March 13, 2019
Affordable housing has become a reality in India with the availability of cheaper financial schemes. What does this mean for millennial housing trends? Millennials in the age group of 24 to 35 years have more spending power and are well-informed.
For them, it is important to commute to work and get back home quickly. Millennials don’t want to spend more time travelling to work and getting back home. They want to enjoy maximum family time with the facilities provided within their complexes.
Affordable Housing Gets Infrastructure Status
In the 2017-2018 Union Budget, the government accorded infrastructure status to the much neglected affordable housing sector. This not only argues well for real estate developers but also millennial homebuyers.
Because of regulatory changes like GST and RERA, the market has become more fair, and real estate purchase simple. There is not only easier access to institutional credit but better accountability and increased transparency. The interest rates on home loans have come down as well. These are the aspects that are attracting millennial homebuyers.
At YOUTHCON 2018, a report titled The Youth Barometer was released. The research was carried out by CREDAI Youth Wing in association with CBRE at the 2nd annual CREDAI Youth Wing Convention in Hyderabad.
The report states that developers need to have a strong understanding of the millennials' behaviours, requirements, and priorities. The research analyses the behavioural patterns of these millennials and how it impacts the real estate.
With smartphones in everyone’s hands, millennials are more empowered to make their decisions. They do their research before making any financial commitments whether it is an investment or buying a house. This is how the millennials are altering the housing market in their favour. The trend shows an immediate development in the affordable housing sector, which favours the government’s ‘Housing for All by 2022’ mission.
Majority of the millennials in India still live with their parents because of the cultural fabric of the country because of high property prices and to save money to buy a house. They still aim to own an affordable and quality home. The rest of the millennials stay in rented houses.
When it comes to owning an affordable house, millennials leverage technology to do their research. Millennial housing trends revolve around their tech-savvy approach to house search. Their dream home research is just by a click of their mouse or a touch of their smartphones. These millennials check neighbourhoods, schools and such other utilities while searching for houses.
They Know What They Want
This fast-paced, technology-friendly generation believes in making sound investments. Owning a house is still the biggest dream of every Indian. Millennials choose their home not according to size but according to affordability. They look for an affordable house to:
– Save money so that they have security in the future.
– Turn it into an investment option when required. (Homebuyers can rent out the house as a source of income).
– In metro cities like Mumbai, Delhi, etc., apartments have very less area. Affordable housing is a great investment which ensures homebuyers/millennials with a space to live no matter how crowded the area is.
Millennials Look For Amenities
More millennials in India are shifting into the suburbs. They are more dynamic and willing to accommodate and adapt to the changing environment. When looking for an affordable house, what millennials count on is connectivity, convenience and a good neighbourhood.
There has been a paradigm shift in the real estate sector because millennials are open to renting out their own house and move into a rented house at their preferred location. This trend is because of an affordable house and employment opportunities.
However, this trend varies from city to city. In cities like Mumbai, Bengaluru, and Delhi renting a home in the city's heart or close to the workplace is not possible owing to a heavy financial burden. Millennials still want to live near cities with amenities like compact homes and smart home features. But, they only scour for projects by reputed developers.
Since millennial homebuyers look for affordable housing, the responsibility lies on real estate to provide them with convenient options. This helps not only people looking for homes but also the real estate sector to perform better according to the needs of the buyers.