Millennials dominate Indian property market

The generation born in the 1980s and after, known as ‘millennials’ or ‘generation Y’, is increasingly coming to dominate the Indian home-buying market. As a result, estate agents and property developers are increasingly taking into account the needs and tastes of property buyers aged 35 and under when placing houses on the market.

60% of the millennial generation favour buying over renting in a residential market that has seen home ownership become less attractive across the board in recent years. The current generation of young adults is also the wealthiest that India has ever known, has a closer relationship to consumer technology, and has far more leisure time than its parents or grandparents.

Lifestyle features

‘Today, the average age of a homebuyer is 30-35, while it was about 45 a decade ago,’ says Gauri Sehgal, director of business management firm Gulf Asia, which has offices in India. ‘Earlier, people would stress on location, but millennials are talking about imported fittings and other lifestyle features.’

Mr Sehgal added that generation Y wanted an independent but secure life and that many young women in this age group were given a house by their parents instead of the usual wedding dowry. He also commented that living in the same neighbourhood as a celebrity from the world of music, film or TV is considered an added status symbol. This influence is most felt in major cities such as Mumbai and Bengaluru, where they tend to live and work.

Using technology

Snehal Mantri, director of HR at Mantri Developers, says the millennial generation has the potential to reshape the Indian economy. She suggests that their particular experiences will lead to more refined buying and selling decisions, forcing developers to change their customer interface methodology.

She also noted that the under-35s will tend to use technology such as internet portals to check prices, reviews and other information before coming to an informed and well-researched decision on their house buying. As a result, they will already be aware of the kind of property options available within their budget needs.

This affinity for technology will also affect the kind of home millennials are likely to buy, with automated conveniences and digital readiness strong selling points. Understandably, they are seen as the key market for the Kochi SmartCity, scheduled for completion in 2019. The township, set to include its own recreation areas, education and healthcare institutions, apartments, shopping blocks and hotels, is described as a burgeoning hub for IT and technical talent.

Family homes

Kerala, where Kochi is located, already has a young, well-educated population with an above-average number of women in the workforce. Arvind Jain, the managing director of Pride Group, says demand for new homes is increasing as these young professionals start families of their own.

‘At the peak of their earning abilities they are willing to spend on residential complexes that provide lifestyle features such as a clubhouse, swimming pools, children’s play area, reserved parking and high-level security,’ Mr Jain explained.