Millennials or Gen Y, the generation born between the mid-1990s to early 2000s, is one of the largest home buyer segments in India. This segment has shaped new expectations and trends in the real estate space.
Millennial home buying behaviour displays both stark differences and similarities with earlier generations- Generation X, Baby Boomers, and Seniors due to their growing up years in huge technological transformational times.
Unlike the previous generations, millennials start planning their home right from the onset of their careers due to the factors like comparatively higher incomes and readily available home loans. They plan everything meticulously before buying a home and hence created a different set of expectations in the real estate market.
Let us see what millennials expect from real estate players-
Preference for New Homes
Millennials prefer buying a new property rather than investing in an old property. A research study from the National Association of Home Builders- NAHB reveals that the millennials’ preference for a brand-new home rose from 28% in 2007 to 41% in 2018. They do not have interest in the renovation and remodeling of old property as it fetches lower or nil insurance claims.
Demand for Smart Homes
As the millennials have grown in a technological transformational age where the internet seeped into their lives at a very young age that shaped their life chances and choices, they prefer technology intervention in their homes as well. Millennials expect a smart home. The NAHB study reveals that 36% of millennials have already purchased a smart home or installed smart gadgets in their homes.
In the age of 4G and 5G internet speeds, they expect IoT-driven operations in their homes. Their homes are backed by smart Waste Management systems, Water Management, Temperature Control, Energy Saving or Power backup, Hubs, Routers, Servers, and Security Systems. Millennials are very particular about star-rated gadgets that are energy efficient. Everything from refrigerators, ovens, and lights, to the water heater, all the equipment is wirelessly connected and integrated through IoT sensors.
Online Home Search
As a tech-savvy generation, Gen Y is a well-informed generation who makes exhaustive research before any purchase decision. They search for every product online, compare their prices, review the feedback and then buy. The same purchase behavior applies in the case of home buying as well. Instead of hunting home with traditional methods like touring homes in person, they prefer to explore homes on digital platforms first. So, all the leading real estate players have invested in AR/VR-enabled home tours for their customers. Once the customers are satisfied with the virtual tour, they visit the property physically.
When it comes to environmental consciousness, millennials share the same perspective as their older generation. They grew up in the times when climate change was happening in front of them and their subconscious mind registered all the ill effects of environmental changes. Now, they prefer investing in a space where they have green open spaces and energy-efficient homes for a sustainable lifestyle. Their concern for the climate is clearly visible in their home buying preferences, like choosing IGBC Green Homes. This preference has inclined millennials to rush towards townships built on sustainable models, like Wave Estate Mohali, which is an IGBC pre-certified Silver Rated Green township fully complying with green living standards.
Amenity Equipped Homes
There is a growing demand for amenity-equipped homes by the millennials. The generation is a huge propounder of the quality of life concept. Amenities like a modular kitchen, shared open spaces, recreational clubhouse with gymnasium, yoga, kids play area along with theme parks for all age groups have become a new norm on the bucket list of millennials. All the major real estate market players have mapped these expectations and ensured these amenities in their homes.
As compared to their previous generations, Gen Y is not looking for bigger homes. Due to the fragmentation of the family sizes and the emergence of nuclear families, there is a major hunt for affordable and relatively smaller homes. The real estate players have started custom designing the new age homes as per the millennial’s demand. Moreover, a nationwide scheme like Pradhan Mantri Awas Yojana has further increased the acceptance of smaller and affordable units among millennials.
Wave Estate- A Gated Community Designed for Millennials
Wave Estate is a thoughtfully designed, well-planned and gated community designed as per millennials’ preferences and standards located in Sector 85 & 99 in Mohali. Sprawled over 246 acres of area, Wave Estate is a Pre-Certified Silver Rated township from IGBC (Indian Green Building Council) designed by International Architects & Designers – Studio DRA, UK, and landscaped by WS ATKINS, UK. It has till date handed over 1000 + possessions letters with 500 + families already residing there. Wave Estate has a diverse range of homes catering to all the income groups of society.
Wave Estate offers both residential and non-residential units like contemporary Villas, Plots, Premium Group Housing, Independent Floors, SCOs, Commercial Areas, Community Centres, and Educational Institutes, situated in an unmatched vicinity of landmarks, like Mohali Cricket Stadium, International Airport, ISBT, leading Educational and Corporate houses like IISER and Indian School of Business. Equipped with all the major amenities like clubhouse, multipurpose hall, gymnasium, yoga, kid’s area, and green, open spaces, Wave Estate is a hallmark of quality living.
The millennial tastes and habits have brought a new trend in the housing market that’s bound to stay here in the coming times. The companies that will tap into these trends quickly encash the home purchasing power of an entire generation or else will risk losing an entire home buyers segment.