Bearing the scars of two recessions before millennials even turned 40, they are ready to invest their money in one of the leading asset classes in the modern world – Real Estate. Riding on the wave of slow economic recovery post Covid-19, they aren’t shying away from home ownership despite the generational divide. Tempting deals, discounts and reasonable home loan rates have ousted the popularity of other asset classes. Also, an increase in financial literacy among the youth and the ease of working from anywhere across the globe encourages more millennials to disengage from renting property.
While Coronavirus pandemic has significantly impacted housing decisions, millennial home-ownership has shot up due to the impact of increasing incomes which has successfully promoted savings and has further boosted their purchasing power. CII-Anarock Covid-19 Sentiment Survey revealed that about 62% of nearly 3,900 participants attested to being optimistic about property ownership. About 24% respondents have already booked properties and 38% opted for newly-launched projects whereas over 81% of people in this segment were previously unsure of investing in real estate ventures.
On the contrary, willingness for ready-to-move-in homes plummeted to at least 17% since lockdowns and an additional 6% since pre-Covid days. Interestingly, nearly 57% of them have also warmed up to the idea of expending money in order to invest in real estate over any other asset classes – stock market, gold, fixed deposits.
Another notable factor in real estate trends in millennials was the eagerness to own property from branded real estate builders – an overwhelming 61% of respondents preferred this as opposed to the non-branded real estate properties. One conclusion in the survey also suggested that within a span of 12 months, 67% respondents strongly felt the prices in the real estate industry would remain unchanged while over 83% believed that they would surge after a period of five years. With demands in the real estate industry surging not just for affordable housing but also premium commercial spaces, the real estate sector is definitely susceptible to sizable changes in the future.