Demand for homes after the pandemic blues is expected to witness an uptick from the fraternity of these young professionals
Covid-19 has brought about a turning point in India’s real estate sector. Industry experts predict that the demand for home-buying is going to increase substantially in the post-pandemic phase. A survey conducted by Anarock Property Consultants and Confederation of Indian Industry (CII) in January 2021 highlighted the major impetus in this demand for homes will be provided by the millenials aged 25-35 years.
Enjoying more disposable income, this breed of young professionals is subject to a growing sentiment towards savings and asset-creation, once the pandemic blues are finally over. The extra space and the investment opportunity currently feature high on their agenda. With a spending capacity to the tune of approximately a staggering $ 3.6 billion, market research has revealed that almost 75% of this segment aspires to buy homes in the next three years, which is good news indeed for the industry on the whole!
Defining the trend
Owner’s pride – As they expect lesser mobility in the future and settle down in their work-from-home (WFH) culture, these millenials have realized the importance of owning a home rather than renting or even sharing one. The need for stability and security has emerged as a critical factor for this breed of buyers now. Research by Nobroker.com has revealed a jump of 66% in this segment as compared to the pre-pandemic times as mortgage rates have hit a multi-decade low.
The affordability factor – With interest rates at an all-time low and developers doling out attractive discounts, this period has worked out to be the most affordable period for investing in residential property.
Preferred requirements – What factors are millennials looking for before buying a house? Compact homes with good resale value are being preferred over luxurious ones. Snob-value addresses are passé, local conveniences, safety, and urban connectivity are very much in demand. There is also a growing inclination among this fraternity to seek or even upgrade to larger homes, even if it entails moving into peripheral localities. While 2BHK’s continue to be the hot-favourite, there are many takers for 3BHK’s now.
Change in investment mindset – In the pre-pandemic phase, the millenials did not favour investing in real estate and chose to put their surplus earnings into stocks and mutual funds instead. However, the trend has changed now: with more awareness about owning a home, recent times are witnessing a 39% increase in investing in real estate over the stock market.
Government initiatives – Thanks to the spate of reforms by the Government such as the Real Estate Regulatory Act (RERA), the market today is far more conducive for the average homebuyer, another prime reason contributing to the increased demand for homes.
The road ahead for developers
In this market dominated by the well-exposed and forward-thinking millennials, the real estate developers have to become equally savvy to make an impact and stay afloat in the market. Arrjavv is one such developer that has consistently managed to catch the fancy of the discerning, young and progressive Indians.
As a developer of repute, Arrjavv has created its own mettle in the competitive market with an unmatched ability to opt for locations and foster them in a way that optimizes their geographical attributes. Boasting an unmatched experience in the industry since the inception of the organized Indian real estate, the Group takes pride in upholding its meticulous standards, constant innovation, one-of-a-kind architecture and engineering wonders. It has also adopted new-age technologies in vogue like Augmented Reality (AR), Building Information Modelling (BIM) as well as the use of drones to value-add to their offerings in a bid to facilitate a more seamless buying process for all its esteemed patrons