Millennials have emerged as a crucial demographic for the premium real estate market in India. A combination of new policies, greater access to entrepreneurial opportunities, increased disposable income, and a better understanding of investment and returns has empowered millennials to accumulate wealth in unprecedented ways. They are leveraging smart deals, taking advantage of favourable market conditions, and adopting a proactive approach to investing in real estate. The pandemic has also fuelled the desire to own a home, with remote and hybrid work arrangements creating a demand for spacious and comfortable living spaces.
This cohort of new-age, tech-savvy buyers, appreciate luxury living while favouring a blend of functional and contemporary amenities. As a result, millennial home buyers’ perspectives are changing; they are investing in homes and developments that provide a lifetime of comfort and security with minimal upkeep. This shift in perspective highlights the changing demands of millennial home buyers and the growing importance of the premium housing market in India.
Recent home-buying trends show that millennials, (nearly 34% of India’s growing population), accounted for 50% of home purchases in 2020. As a testament to this trend, a survey by Statista in 2022 revealed that 56% of millennials preferred investing in a home over other investments.
Here are a few trends poised to change the luxury housing sector in the age of millennials:
For millennials, sustainability acts as a critical component of premium housing, which is synonymous with paying more to receive higher value – whether in terms of tangible factors such as more amenities, or intangible ones such as greater emotional gratification. As a result, they demand that their homes reflect the same level of environmental consciousness. This has led to an increased demand for sustainable homes among buyers seeking a long-term investment that aligns with their values.
Consequently, developers understanding these demands are incorporating an array of eco-friendly features in their premium projects, such as solar panels, rainwater harvesting, low-flow toilet fittings, double-glazed performance glass, vertical gardens, smart lighting, to name a few to appeal to this demographic. As an advantage, such homes are more cost-effective to maintain and provide a healthier living environment, making them an ideal choice for those seeking a luxurious and environmentally responsible lifestyle.
In this digital age with constant access to technology and modern lifestyles, the expectations of millennial premium homeowners has transformed dramatically. The demand is now for smart, connected homes as they provide greater convenience and efficiency. In response to this demand, premium houses now incorporate voice-activated controls, allowing residents to manage lighting and entertainment systems with simple voice commands.
The upward trend of enhanced energy efficiency can be seen with the growing popularity of smart thermostats that enable homeowners to remotely regulate the temperature of their homes, thereby reducing their energy bills. These systems employ advanced learning algorithms that adapt to residents’ habits and preferences, ensuring the house is always at an ideal temperature.
Integrated security systems provide homeowners with the ultimate peace of mind, facilitating remote monitoring and real-time notifications for security breaches.
Smart home technology enhances convenience and security, significantly increasing the value of premium homes, which is another factor that drives homeowner preferences.
Luxury Designs and Layouts
Home designs and floor plans are witnessing an evolution to accommodate buyers’ changing needs, with millennials at the forefront of this movement. Open floor plans, which give occupants a social and common area to assemble, entertain and unwind, can be seen in today’s home design.
In addition, amenities such as yoga studios, outdoor fitness centres, rooftop swimming pools, co-working spaces, multipurpose courts, pet gardens, on-demand concierge services, and personal shopping services, are now considered the epitome of comfort and luxury.
Experience Over Material Possession
The luxury housing market is steadily beginning to understand the millennial preference for experiences rather than material goods. Developers as a result, are creating projects that provide residents with not just a home but a community of like-minded individuals to engage with and share stories.
Such communities raise their overall worth and give residents more satisfying living experiences by establishing a sense of belonging. The inclusion of community areas in premium housing projects have become an important factor in attracting millennials who seek a well-rounded and experiential lifestyle.
The rising demand from millennials is reshaping the definition of luxury, requiring developers to adapt their designs to meet these new needs. By prioritising eco-friendly and technologically advanced homes that align with millennials’ choices and lifestyles, the luxury real estate industry has the potential to attract a new wave of buyers and stay ahead of the curve. Developers who recognize and adapt to this changing need are well-positioned to benefit from this trend and thrive in the competitive luxury housing market.