Be it food, apparel, housing, or entertainment, most of the market demands and expectations are set by millennials. When it comes to real estate, things aren’t too different. Millennials are at the prime of their careers and are driving real estate trends in the country’s financial capital, Mumbai.
More than anything, they are opting to buy 1BHK homes, and experts believe this is a great idea.
Let’s take a look at some of the reasons why -
- All About Location – Connectivity, location, convenience - these are the most important things to look for in a home in Mumbai. Working professionals and young families prefer to stay in the neighbourhoods where they work to cut short work commutes, have great connectivity, and can find excellent social infrastructure for their families. This makes a 1BHK in Powai, Andheri, and nearby localities more practical and efficient than a 2BHK or 3BHK in the distant suburbs.
- Investment and Asset Creation – Rentals in most neighbourhoods and localities of Mumbai are at an all-time high. It makes financial sense for millennials to invest in 1BHK homes and create an asset that will appreciate rather than create a monthly rental outflow over the years. With home loan approval becoming easier and subsidies available for affordable housing, it is no surprise that millennials prefer owning real estate in Mumbai rather than renting or leasing.
- Tax Savings – Most millennials are at a career stage where securing funding through bank loans or housing finance has become more accessible. Through robust financial habits, credit scores are at their highest. Banks are more amenable to funding a millennial over a senior citizen or an intern at the start of their career. With such funding comes tax relief. Taking advantage of Section 24 and Section 80EEA makes for excellent tax planning and considerable relief to homebuyers at this stage.
- Nuclear Family et al. – unlike previous generations, millennials are more apt to live in small, nuclear families. A 1 BHK flat in Powai and other such localities are ideal for a couple with small children. The evolution of modern design makes for flowing spaces and optimal space utilisation rather than traditional home designs. The rise of studio apartments, ergonomic materials, and fluid designs make smaller apartments ideal for millennials who do not want to invest much in maintaining larger homes.
- Smart planning for smart homes – Millennials are more financially literate and better at planning than previous generations. Investing in 1BHK homes frees up funds to create a diversified portfolio and even opt for a second home in the suburbs. This is an important idea that drives the demand for smaller but smarter and more affordable housing in Mumbai. 1 BHK homes also make it easy to opt for a different more laid-back location post-retirement!
- The Sustainability Factor – Smaller homes make for lower maintenance costs, lesser utility bills, and lower furnishing costs. Millennials are increasingly conscious of lower energy bills, reducing carbon consumption, and living greener lives. In a family where both partners live busy work lives, a smaller, cosier space in a good location is far more practical than an unwieldy home that demands energy and attention.
The millennials have access to more resources than any of the previous generations. This helps them better plan their lifestyles and finances and make the best use of these resources. Smaller, more efficient homes are certainly what they want, and some of the top developers in Mumbai city are glad to oblige. The rise of gated communities with top-notch facilities offering studio apartments and 1BHK homes is evidence that the millennials wield market power.