Millennials Emerging as Real Estate New Growth Drivers

According to a report by Investment banker Morgan Stanley, millennials are a key force that can drive the financial success and economic growth of India. People in this age group make up almost half of India’s workforce and provide 70 percent of national household inc

BY Realty Plus
Published - Friday, 24 Sep, 2021

Millennials Emerging as Real Estate New Growth Drivers

According to a report by Investment banker Morgan Stanley, millennials are a key force that can drive the financial success and economic growth of India. People in this age group make up almost half of India’s workforce and provide 70 percent of national household income with a consolidated spending capacity of $3.6 billion. The category comprises educated and successful young professionals having a higher disposable income, and hence present-day millennials have evolved to being financially independent and responsible in all aspects. With the unprecedented times, millennials have become more cautious about their investment strategies and looking at diversifying their portfolio for security and wealth generation. A group of informed audience, today’s millennials understand the nitty-gritty of each asset class and analyze the current market scenario, thus, opting for conventional investment options that give quick returns. Millennials have certainly shown a significant shift from being asset-light to leaping into the world of investing, and the 426 million-strong young India are now sincerely planning for their financial futures. Covid-19 has undeniably altered the way we exist, think, work, or even socialize with people around us. With a paradigm shift in our work culture and after being locked indoors for a long time, there is a surging need for owning a home amongst millennials. Besides, the differential behavior towards renters and owners in various housing societies during the pandemic further influenced their decisions for owning a home instead of renting. With business uncertainties resulting in stock market crashing and modern investment instruments like mutual funds witnessing severe volatility, real estate emerged as the safest means of asset creation. Additionally, affordability has enhanced with the lowest-ever interest rates, various government initiatives, lucrative offers by developers, and thus millennials are considering real estate as the investment asset one should go for. With the significance of a safe haven developing stronger, millennials are viewing real estate as the best bet both from an emotional perspective and a financial standpoint. As a result of shifting times, millennial homebuyers are today looking for a place that provides not just a living space but a unique living experience. Realizing the essence of living life to the fullest, millennials are viewing the home as something beyond just a place to reside in, rather than considering it as an abode to curate beautiful memories and experiences to treasure for a lifetime. This is even more, a growing reason for millennials’ preference towards Grade A developments that offer an excellent amalgamation of needs and desires and offer the finest lifestyle.