- Date : 10/04/2021
- Read: 5 mins
Demand for housing has risen as home ownership gains top priority among new-age millennials.
It is not just a dream for new-age millennials to own a home of their own but a significant financial and emotional investment as well. Recent statistics show that 70% of millennials globally have already invested in homes and 91% are planning to do in the next 5 years.
The demand for housing has skyrocketed worldwide as the market is primarily being driven by youngsters and new families who wish to own a piece of real estate that they can call their own. The scenario in India is not very different.
Why are millennials buying homes?
The major reason for this shift in demand has been access to more home loan options, affordable EMIs, and the desire to settle down in one’s own home by the age of 30. Other than being practical and pragmatic, let’s take a look at some secondary reasons that are driving millennials to become home-owners.
- Rapid urbanisation: Metros and Tier 2/Tier 3 cities in India have been experiencing rapid urbanisation due to expansion supported by private companies. The government has cashed in on the opportunity and decided to establish ‘smart cities’ across India.
- Growth in disposable income: As a result of urbanisation, professionally qualified millennials are now ascending the career ladder much faster. Working in private and public sector companies with impressive pay packages has allowed them to have a larger share of disposable income early in their careers.
- Attitudinal shift: For millennials, convenience trumps style as far as investing in a home is concerned. Tech-savvy families and individuals prefer smart homes that are equipped with modern facilities and amenities. They are happy to pay a premium for homes with integrated security systems.
- Government support: The ‘housing for all’ initiative by the Indian government, along with significant tax benefits, is another main reason why millennials perceive owning a home as a key investment.
Best Indian cities for millennial home buyers
There are several aspects that millennials take into consideration when investing in their first home. The choice of city, neighbourhood, price per square foot, infrastructure, available civic amenities, all play a role in helping them arrive at a decision. Taking all these into account, here’s our list of best Indian cities for the millennial home buyer.
With top-notch infrastructure, Hyderabad is a Tier 1 city in India that is quickly becoming a top destination for millennial home buyers. Its booming IT sector has helped to grow the job market steadily over the years, creating opportunities for youngsters to consider settling down in this city for the long term.
Upcoming neighbourhoods like Gachibowli, Manikonda, Miyapur, and Kukatpally have attracted the attention of real estate developers, who are heavily invested in creating affordable housing for new-age families. The city boasts of efficient public services, civic amenities, good schools, and low pollution levels, all of which make it one of the best Indian cities for millennials to live in.
The property market in Ahmedabad is expected to grow by 25% by 2030. Other than being a smart and modern city, it is a gateway to the Middle East and African markets, making it ideal for millennials who carry out a lot of business with these regions. The city is home to some top public and private sector companies and has a thriving job market.
Ahmedabad’s booming real estate market offers a plethora of new-age projects that offer world-class amenities and easy connectivity. From high-rise apartments to premium villas, this bustling city has something for every budget, which makes it an appealing destination for millennials.
Pune has grown from the tag of being a ‘pensioner’s city’ to one that belongs to youngsters and millennials. It offers growth opportunities for service/manufacturing industries and start-ups, and is a favoured destination for global IT companies that have set up shop in localities like Hinjawadi, Kharadi, Viman Nagar, etc.
Real estate developers are now focussed on developing a mix of affordable housing projects that are estimated to grow the market by 15%–20%. Neighbourhoods like Wakad, Baner, and Balewadi are already becoming popular with young IT professionals. The city is expecting a major facelift with multiple infrastructural projects such as a ring road, bus rapid transit system (BRTS), and a prestigious metro project in the pipeline.
Navi Mumbai and Thane
While Mumbai may be the city of dreams, it can be an uphill task for young millennials to invest in a home on a budget. Navi Mumbai and Thane, with well-planned infrastructure, wide roads, and an abundance of natural beauty, offer a viable alternative. These suburbs are also conveniently connected to Mumbai via local trains. Large townships that are both spacious and affordable are driving the real estate market in these suburbs.
Navi Mumbai and Thane boast of top-class civic amenities that include health centres, educational institutions, and recreational centres. Companies such as Reliance, L&T, and Accenture have set up offices in Navi Mumbai, and this has put the local job market on a growth trajectory. Thanks to the upcoming Navi Mumbai international airport, real estate prices are also gaining momentum.
Financially sound millennials are inclined to invest in homes that can stabilise their family life and secure their future. Other than that, a desire for well-designed and compact spaces, connectivity, and convenience take precedence over living in posh locales. Buying a home in your hometown or in a big city: What makes financial sense?