Millennials often get a bad rep for not managing their finances properly, this generation is often labelled as careless and not having enough knowledge to handle even house loans properly. But surprisingly many are already homeowners. As per recent reports Millennials are considered to be the largest group of home buyers currently. CBRE (real estate and investment firm) has conducted a survey which revealed that 82% of the millennials stay with their parents and 23% are likely to move out of their homes within the next four or five years.
Another interesting stat is that more than 65% of the millennials aim to purchase a property. Around 2020, 65% of the population will be under the age group of 35, therefore it is critical that we gain insights into the behaviour of this population. Recent years has seen a rise in the investment in gated community villas in Chennai. But why are millennials preferring to purchase a property? Let’s look at some of the factors which are driving Chennai’s millennial population to purchase a property.
#1. Ingrained with a traditional mindset
They are very family oriented despite the contrary reports. They value their family circle and respect traditions and age-old customs. They are more likely to prefer community living. This is due to the fact that they are burdened by the tough work schedules and time-constrained lifestyle. Community living offers them more valuable experience.
#2. Follow a conservative path
In the past this particular demographic is known for their zest for life. However, they have changed due to previous economic slowdowns and job losses. These uncertainties have helped the millennials from Chennai stabilise their life and shift to a more conservative approach towards life in general.
#3. Leaning towards constructive investment
Compared to the previous generations, this demographic is more glued to the internet and are more knowledgeable. Millennials will invest a lot of time on research and spend money wisely with more focus on investment. As per the CBRE report, more than 35% of the Indian millennials believe in investment.
#4. Millennial generation prefer smaller homes
Market research results have indicated that majority of the Chennai millennials prefer smaller homes usually 1-2 BHKs which generally fall in the price category of 40 to 70 lakhs. Most of these young families these days are nuclear families with both the partners working and time is a scarce resource. Therefore, smaller homes are preferred. The popularity of studio apartments is catching up among the bachelors. As mentioned before most of the millennials prefer gated communities as it ensures more safety.
#5. They choose to lead a more economical way of life
Surprisingly more and more millennials are opting to lead a minimalistic way of life. They are more focused on protecting the environment and are inclined to save more. This is one of the reasons why they like to go to smaller homes as they are easy to maintain.
#6. Prefer to live nearby to their workplace
This demographic has a preference for living near their offices. They do not intend to travel much and are happy to utilize their free time on recreational activities. Many builders and developers have capitalised on this and have started many gated communities which are closer to IT & tech companies. This has encouraged the Chennai millennials to invest in villa projects in Chennai OMR.
#7. They have high disposable income
Over the past few years, there has been an increase in the employment opportunities in India and especially in Chennai which has witnessed a large number of MNCs and IT/ITES being set up in the OMR and Taramani areas. The average income of an employee from Chennai has increased more than six times over the last decade. With the increase in the income levels, an average citizen can save enough for a down-payment for a house in five years’ time.
#8. Quick and easy availability of loans
Home loans are the easiest and quickest way to fund for your dream home. Younger people have a bigger chance of loan approval due to the lesser number of active loans in their name and the higher payback period. They can also enjoy the lower interest rates and have the option of paying a lump sum amount when they get a bonus or hike.
#9. More focused towards the future
Since most of these young buyers are educated, they are aware of the impending price rice of the properties. Many real estate properties especially the ones around the central parts of the City get expensive over a period of time, hence most of the Chennai millennials start the hunt for their home at an early stage. The rising property prices are forcing the youngsters to look for homes in the suburban locations of the city that are more cost-effective.
#10. More tech-savvy and indulge in better research
The current millennial generation has the power of the internet and is glued to their mobile phones most of the time. This allows them to do a lot of research on the property websites where they review the properties before making any significant investment. Most of these property websites could be accessed from any corner of the World, allowing young investors to do their research as per their convenience. Chennai has become a hotspot for real-estate properties. The growing millennial population has increased the demand for many lucrative projects around Chennai. With so many new opportunities available, this is the right time for the builders to Capitalise on this potential.