Do you know who is seeking the maximum home loans?
53% of the home loans (more than half) were sought after by Millennials and Gen Z only (age group of 18-34 years) from October 2022 to October 2023, says a housing finance report published by a renowned real estate company, Magicbricks.
Do you know what this means?
It means that there is an insurgence among the youth to buy homes – the youth home buyers are shaping the real estate trends. This trend of going after home loans shows the investment inclinations of the youth home buyers in the real estate market.
This blog will help you understand these new trends set by the Millennials and Gen Z in the real estate market, what they are looking for, and how to reach out to them and sell a property.
What is the New Real Estate Market, comprising the Millennials and Gen Z?
Here is a fact – India is one of the youngest nations in the world.
And this generation is exploring the real estate market dynamics at a younger age than the previous generations. Many of these young home buyers are looking to own a home.
Younger generations are inclined towards retaining the properties that they buy because of the financial security that home ownership provides. They want to be the owners of real estate properties.
Millennials are the ones born between 1981 and 1996, while Gen Z comprises people born between 1997 and 2012. They are now in their 30s and 40s and now have good spending power, and are making conscious choices of living. They wish to spend money to live as per their tastes and likings. They would like to realise their ambitions by focusing on their standards of living.
The majority of property owners in the aspirational housing market are the youth. They have envisioned a lifestyle that suits their personality. They are seeking a sweet spot that will provide them with a home that is affordable and has modern amenities. They have embraced technology everywhere, including the real estate market, and real estate agents must do the same to keep up with the trend.
Real Estate is in Trend
The geopolitical tensions, the unpredictability of the relations, and pandemic waves like Covid are having an economic impact. The way of the contemporary world is affecting the choices of investment.
Millennials and Gen Z are seeing real estate as a good long-term investment. Looking at the market dynamics, real estate is a more stable market and the right choice of investment.
Not to forget that social status is also affecting the choice of the youth home buyers. They would like to show a real estate property that is bound to appreciate.
They are not looking at just being homeowners, they wish to be sound investors too. Hence, real estate is seeing a growth even post-pandemic. Investing in real estate properties is in trend.
What are the new buyers looking for?
Now that it has been established that the real estate trend keeps changing, it is important to understand what the youth home buyers are interested in and analyse the market dynamics. Once you get these market insights, you can deliver to them the houses that they desire.
Here are some predominant features that the discerning Millennials and Gen Z are looking for when they are looking for homes.
Affordable Housing
58% of this demand for home loans among the Millennials and Gen Z is for affordable housing i.e. housing finance up to 40 lakhs. They look at budget-friendly properties and those that have a good source of income.
This generation has challenges of their own if they want to buy a home – a challenging job market, other loans, and debts. They wish to be property owners of decent homes and be part of pleasant neighbourhoods, but at a ticket price that they can afford. Smaller living spaces and shared communities are a good choice in the affordable housing market.
Communities
The Millennials are very much interested in living in communities that offer shared spaces and dynamic interactions. Off late, such gated communities that are near their workspace are gaining popularity. There is personal space as well as a good sense of belonging to a community and neighbourhood. They want to have diverse, socio-cultural experiences in inclusive communities.
Modern Amenities
Amenities are of paramount importance. Home buyers want to embrace their passion for a variety of things like fitness, sports, entertainment, socialising, and gardening.
Smart technologies with automation must be integrated into the living spaces. Lighting, motion sensing, voice assistants, environmental and temperature controls, etc are some famous smart innovations these days.
Aesthetic landscape
Who would not love living in a beautiful space?
Homes must be appealing to the eyes of the Millennials and Gen Z. The inside and the outside.
Outstanding features like having a forest or farm experience, picturesque views, and remarkable green landscapes are golden offers to connect with nature and themselves.
The outdoor space is vital when choosing a living space. A good balcony overlooking a graceful garden, lake, or park gives a boost to a home buyer.
Hybrid workspace
With an increase in the work-from-home culture, home buyers are looking at properties that can provide them with in-built office spaces. They want to have separate dedicated spaces to work in. These office spaces need not be elaborate or extravagant. A simple room with creative functionality is good to go.
Flexible design
The youth home buyers have a creative mind of their own and would like to purchase flats that can be easily renovated and refurbished. The properties that impress the Millennials and Gen Z are the ones whose plan, materials, fixtures, and design can be flexibly changed as per their liking and preference.
Proximity & Location
How far is the workspace from home?
Nobody wants to spend their time travelling long distances, to and fro from the office. Especially the current generation. Townships and communities near their work location are preferred.
And, provisions like schools, hospitals, stores, malls, etc must be in the vicinity of their homes. Even smaller homes in such prime locations are sought after by property owners.
Sustainable features
Gen Z and Millennials are conscious of the environment. They prefer green homes that have sustainable features. It may be the use of solar panels, green materials, energy-saving mechanisms, low maintenance, etc. Wanting to be eco-friendly is driving the generation to purchase these energy-efficient buildings.
How to keep up with the new Real Estate Market?
Millennials and Gen Z want to buy homes for themselves to live in. They want to own homes. With all the above-mentioned factors in mind, fish out promising properties that suit them well.
But,
These youth home buyers are discerning customers. They are well-educated and well-equipped to navigate the digital world. They have questions and are seeking modern solutions. You must keep up with the digital space and be ready to give information online, virtual tours, and hassle-free transactions to come off as a modern real estate agent. You must upskill your digital marketing.
As a real estate agent, you should study loan demand analysis. It is your skill in getting to these youth home buyers a property that suits them at a price that they cannot turn down.
Simply put, the Millennials and Gen Z want to own modern homes, in good neighbourhood, and at affordable prices. It is about time that you tailor your real estate listings as per the preferences of the Millennials and Gen Z because they are making the most of the real estate housing market.