Millennials and youth to drive affordable housing demand: Report

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Millennials and youth to drive affordable housing demand: Report

A majority of millennials aim to buy homes that offer quality of life, without compromising on the quality, size and location, says a report by the CREDAI Youth Wing and CBRE

Owing to cultural upbringing and high property prices, 82 per cent Indian millennials still live with their parents, with a majority of millennials still aiming to own a quality home. This was part of the findings of a report titled ‘The Youth Barometer’, by CREDAI Youth Wing in association with its knowledge partner CBRE, which was released at the 2nd annual CREDAI Youth Wing Convention, YOUTHCON 2018, in Hyderabad.

The report highlights the major trends created and driven by millennials, addresses issues such as why millennials live with their parents longer and how millennial consumers spend, save and play. The report covers three major categories – where millennials live, where millennials work and how they play. Comprising of one-fourth of the total workforce in Asia-Pacific, millennials are a prominent source of spending power. The research analyses the behavioral patterns of these millennials and how it impacts the real estate, job and the retail markets. CBRE Research polled over 5,000 millennials across Asia-Pacific, to frame the report.

Key findings of ‘The Youth Barometer’

How millennials live: 82 per cent Indian millennials choose to live with their parents, largely due to the cultural upbringing of Asian countries, where parents house their children until they get married. The high rate of property prices, is also a key factor for millennials to not move out. Today, Indian millennials are known as the ‘Generation Rent’, since 68 per cent millennials, who do not live with their parents, choose to rent a place. The findings reveal that about one-third or 35 per cent of the respondents identify ‘investment’ as the key driver for buying a property. Overall, beating common perceptions, a majority of millennials aim to buy a home and while placing the utmost importance on quality of life, they also refuse to compromise on the quality, size and location, further driving trends towards affordable housing for rent and sale.

How millennials work: Today, millennials account for 25 per cent of the working age population in India. While choosing a company to work for, 75 per cent of Indian millennials consider salary and benefits as the top priority. Additionally, the report finds that about 73 per cent of the Indian respondents are unwilling to travel beyond 45 minutes to their workplace.

How millennials play: The findings of this report show that 24 per cent of Indian millennials tend to save their earnings. It has also been projected that in the next three years, 47 per cent of Indian millennials will increasingly shop online. However, today, 20 per cent millennials still prefer to shop at a physical retail store and this will remain a priority for the youth, to socially engage and recreate.

The increasing influence of millennials has been driving real estate trends, in particular across the Asia-Pacific region and it is imperative for developers to gain a thorough understanding of the youth’s behaviours, requirements and priorities, the report adds.

Commenting on the report, Jaxay Shah, president, CREDAI National, said, “The Youth Barometer report states the growing impact that the youth will have on various sectors, especially real estate and further highlights the emerging trends that are being driven by them. The trends indicate an imminent development in the affordable housing sector, which works in favor of the ‘Housing for All by 2022’ mission.”

Anshuman Magazine, chairman, India and south-east Asia, CBRE, added, “Given that by 2020, 65 per cent of our population will be under the age of 35, it is critical that we gain insights into the behavior of this population class. The Youth Barometer report tries to understand the implications that this population set will have on different real estate classes.  In two years, millennials will make up half of the global workforce. With such a large voice, millennials’ decisions about where they work, how they work and whom they work for, will have lasting consequences for the global economy and for real estate.”

@Source: Housing News Desk

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