Indian Realty Witnessing Exponential Growth Driven By Millennial Homebuyer Segment

Ravindra Pai

Indian real estate sector is all set to take a giant leap in terms of growth as millennials emerge as the biggest homebuyers in recent years.

As the quest for home ownership grows, 54 per cent of all homes bought in India during 2022 was by millennials. Given the stability of the real estate sector, the low-risk profile of this investment class, and high return potential, millennials also increasingly rate real estate assets as an alternate investment option other than financial instruments like mutual funds, & stocks for diversifying their portfolio.

Industry officials opine that real estate developers with credible brands and execution legacy are likely to be the winners owing to the shift in buyers' profiles.

"One of the main reasons for the shift is the increase in the need for one's own space in the city, which can be customized to millennials' needs. Another facet differentiating millennials from other generations is the high value placed on community living. Nowadays, homebuyers are looking for residential communities where they can build networks and connectivity," Ravindra Pai, Managing Director of Century Real Estate Holdings Pvt Ltd said.

"Moreover, buying a home isn't just about finding a house to live in, any longer. For millennials, it is a space that reflects their lifestyle. These factors are some of the major ones that have propelled the demand for home ownership among millennials," he added.

Hearteningly, India has emerged as the home to the maximum number of young people in the world with more than 450 million strong millennials that have a collective spending power of about $330 billion. According to real estate consultancy firm CBRE, the country also has one of the largest urban populations in the world of more than 500 million. Urban GDP contribution is likely to grow to 75 per cent in FY30 from 63 per cent in FY20. Moreover, the country is home to the largest digitally-skilled talent pool and STEM (science, technology, engineering, and mathematics) talent in the world as per CBRE. Such favourable demographics with rising spending power augur well for the Indian realty sector.

To tap the emerging opportunities in this space, many developers are coming up with customised product offerings for millennials, suiting their tastes. Century Real Estate, one of the leading realty firms in India, has carved out a separate brand codenamed ‘NEW YOU' for millennials in its pursuit to serve the masses better.

"At Century Real Estate, we have understood the needs of our millennial customers and curated products for them. Our latest project Codename ‘New You' is being constructed with the preferences of millennials in mind. It is located in a thriving neighbourhood of Jakkur in North Bangalore close to many tech parks, hospitals, schools, malls, and restaurants, so a resident's needs would never be too far away. We also tailored the product to cater to the needs of the millennial buyer by offering smart layouts, unique amenities & features and by pricing it right, to deliver maximum value," Pai, MD of Century Real Estate said.

Century received an overwhelming response during the pre-launch of the project with almost 40 per cent of the units sold within the first 48 hours of the launch. Importantly, most of the units were sold within the first week of pre-launch itself, the company informed.

Going ahead, Century Real Estate is planning to launch multiple projects, targeting millennials that are both technologically savvy and aesthetically pleasing.