By Sandeep Chhillar,
The concept of homeownership holds significant cultural importance in India, symbolizing financial security. This cultural perspective significantly shapes the consumer behavior and investment choices of the next generation of home dwellers. Recent trends indicate millennials increasingly being in favor of homeownership driven by economic factors such as increasing per capita income, relatively stable interest rates, and strict housing regulations. This in turn is exerting a significant pressure on the Indian real estate market, shaping demand patterns, driving innovation, and pushing the industry towards greater sustainability and digitalization.
According to a recent survey conducted by the Confederation of Indian Industry (CII) and Anarock, 52 percent of millennials consider real estate to be the top asset class from an investment perspective. (source)
Developers and stakeholders are understanding and adapting to the evolving preferences of this demographic, and here’s what the millennials can expect from real estate in 2024:
1. Increased Community Living:
Post the pandemic, millennials are seekingliving spaces which integrate social connectivity. . With offices offering hybrid work modules, people are spending more time at home and are therefore seeking homes with a strong presence of community living for all ages.
Developers have realized this and are focusing on gated communities with expansive greens, community clubs, and walkways, among other amenities. For instance, as we venture into 2024, the real estate landscape on Dwarka Expressway, particularly in sectors like 88, 95, and 103, has emerged as a hotbed of potential for millennials. This bustling corridor is home to projects that offer a modern community living.
2. Better Location and Neighbourhood Dynamics:
Aiming to achieve work-life balance, millennials are seeking convenience and accessibility in their living spaces. This is driving the demand for properties located close to urban amenities such as public transportation, coworking spaces, recreational facilities, and shopping centers. Developers are offering mixed-use developments that offer a blend of residential, commercial, and recreational spaces.
For instance, in Delhi-NCR, the allure of the Dwarka Expressway lies in its strategic location and the promise of a vibrant neighborhood.
We at the Landmark Group are pursuing new concepts and designs to cater to evolving preferences, especially along the Dwarka Expressway corridor, as it is a neighborhood with ample space for innovation and a relatively young infrastructure. The region holds immense potential for architectural marvels and cultural enrichment.
3. Policy Reforms And Government Support:
In the fiscal year 2023, India’s residential real estate market witnessed remarkable expansion, with the total value of home sales reaching a record INR 3.47 lakh crore. This marked a substantial 48% surge from the previous year. Moreover, the volume of units sold exhibited a robust upward trajectory, with a 36% increase totaling 379,095 units (source). This proves that there is continued interest in homeownership.
Recognizing this need for increased housing, the Indian government is focusing on affordable housing schemes such as the Pradhan Mantri Awas Yojana (PMAY). Millennials can expect homeownership to become more accessible with such policies. By 2024, PMAY aims to provide housing for all, with a target of constructing over 20 million affordable homes.
4. Luxury Housing:
As per a survey by the Confederation of Indian Industry (CII) and Anarock, where 52% of the respondents were millennials, millennials are driving a significant proportion of the real estate demand. Of these, over 45 percent of property seekers in the NCR are looking to buy 3BHK homes in the near future. (Source)
As millennials are choosing to live in spacious homes, there is an increased demand in low-density, luxury housing properties. New Gurugram has seen unparalleled growth in luxury real estate, with Dwarka Expressway as a leading sub-segment.
5. Tech-Savvy Solutions:
In 2024, technology will continue to play an increasingly pivotal role in the real estate sector. India is experiencing a surge in the adoption of smart home technology, driven by the growing middle class and increasing urbanization. Millennials, known for their digital savviness, are looking to embrace tech-driven solutions such as virtual property tours, AI-powered analytics for property valuation, and blockchain for transparent transactions.
Developers are integrating technology into real estate spaces, making living digitally enhanced. The projected revenue in the smart home market in India is expected to reach US$6.5 billion in 2024. (source)
Millennials can expect smart spaces that offer unparalleled convenience, security, and efficiency. Smart home solutions with features like biometric access control, remote surveillance, and automated energy management systems are becoming commonplace. Payment processes are streamlined through digital platforms, enabling hassle-free transactions and automated installment payments.
Proptech players are leading the charge by offering tech-based solutions to streamline procedures, improve efficiency, and enhance user experiences.
Overall, millennials in India are showing a growing preference for sustainable and eco-friendly living spaces. With concerns about climate change and environmental conservation on the rise, developers are responding by incorporating green building practices, energy-efficient features, and low-density housing. COGNITION[1] [2] Smart Data research shows that 96 percent of Millennials believe sustainability is important when making purchasing decisions. (source)
This has resulted in an increased offering of sustainable spaces like low-density housing, expansive green, energy-efficient homes, etc.
In 2024, Indian millennials can look forward to a real estate landscape defined by sustainability and tech-driven innovation. They will witness continued growth in real estate, fuelled by urbanization, infrastructure development, and government initiatives.
Sandeep Chhillar, is Chairman and Managing Director at Landmark Group
Also Read: Millennials and Gen Z constituted 53% of demand for home loans
