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Millennial Buyers Drive Demand For Housing In India

The market for the average homebuyer is much cleaner than earlier and in the end, if it is a buyers' market, it is a win-win for every stakeholder

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The present market does not simply deal with consumers with money to invest. It deals with informed adolescents who are savvy enough to conduct their own research. Millennials have faithful friend in this technology called 'the Internet', which helps them make comparisons, estimate pros and cons, before investing money on anything. In this regard, while most may assume that this should dissuade the current crop of young homeowners from making real estate investments actively. But on the contrary, the transparency and legitimacy of organized, real estate listings in wake of the recent governmental reforms, has enthused the generation about putting down money on land.

The boom of e-commerce enterprises in the country may have spoken to the generation of millennial consumers, the best. They prefer filtering their purchases by definite, computer-accurate categories and take parameters like delivery timelines and quality seriously, as opposed to the yester-year buyers who mostly understood value for money. Besides the consumer electronics and automobiles benefitting from this trait, the real estate industry stands to benefit from the same as well.

The millennial populace accounts for nearly half the population of the nation. And it is supposed to jump up by a quarter, in the next decade or so. By the way, 'millennial' is the term used to define people belonging to the birth years between 1980 and 2000. Given the importance of a buying a home in the life of a first-time buyer, markets have behoved from giving the millennial crowd what they want. A home is a symbol of status and security and any adolescent in any part of the world values that. If a real estate developer can respect that sentiment, then they look to conclude a happy business deal to put down in the ledger. The millennial consumer has the Internet resources to simply find a competitor who is willing to hear them out for a lesser price; so the real estate developer has no choice but to be equally savvy, if they are to tap into this potential market.

Factors like proximity to basic amenities, urban connectivity, and public infrastructure in a liberal neighbourhood, motivate a millennial to purchase a home. They are averse to attaching absolute sentiments to real estate, and do not hesitate to trade-in and trade-up to a new better home with newer amenities. This generation does not hesitate to take risks. In the past, the consumer had to go store to store, business to business, to weigh the pros and cons. However all that has changed after the proliferation of online media that pretyy much provides all necessary information transparently and swiftly. Thanks to the Real Estate Regulatory Act (RERA), which puts an end to misleading advertising, false commitments and enticing offers. The market for the average homebuyer is much cleaner than earlier and in the end, if it is a buyers' market, it is a win-win for every stakeholder.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

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RERA Homebuyers

Sunny Katyal

The author is Director, Investors Clinic

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