The real estate sector experienced a major setback with the economic downturn caused by the COVID-19 pandemic. With the resurgence of the economic environment, though, there has been a boom in the demand for luxury housing and premium properties. Experts believe that most of this demand comes from millennials looking to own homes in upscale projects. Here are some of the top reasons why millennials are looking to own luxury homes.
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More Income, More Inheritance
“Inflation is high, prices are rising”. This is a common complaint that we hear these days. And yet the demand for luxury homes and premium properties, particularly among millennials, is at an all-time high. High income is one of the main reasons for such an uptick in demand. According to a recent survey, younger professionals seem to be more inclined to opt for a higher-paying job than consider other perks. Millennials are also more likely to inherit wealth than older generations. This directly translates into purchasing power, and luxury homes are becoming more accessible to this generation of entrepreneurs and professionals.
Millennials are currently at a stage where they have the wealth and the inclination to invest in a grand and beautiful lifestyle. The Wealth Report 2022 suggests that the number of High Net Worth Individuals (HNI), under the age of 40, in the eight largest cities of the country grew by about 11 per cent. This could be the secret to the high demand for luxury residential projects in major cities like Mumbai and Delhi. These millennial homeowners are looking for superlative aesthetics, design, and state-of-the-art amenities and facilities in their homes, and developers are keen to provide these.
Prior to 2019, there was a growing awareness of climate change and environmental issues among the millennials, but the pandemic has only put this into overdrive. Health, fitness, and carbon-conscious living are major aspects of the lifestyle that millennials want for themselves and their families. The pandemic has also forced the millennial homebuyer to give up the on-the-fly lifestyle and opt for larger, greener homes in the suburbs. This is the reason why housing projects and premium properties in major cities and suburbs are now featuring landscaped gardens, orchard spaces, waterfronts, and ergonomic construction practices.
The millennials are the first generation to grow up with computers, smartphones, and technological resources. It is no wonder they want homes that leverage the advantages of technological innovations. From state-of-the-art security systems to complete home automation, from weather-controlled HVACs to IoT-connected home appliances – millennials are looking to own homes that are powered by the internet and technology. Luxury home projects in major cities like Mumbai routinely feature smart garbage disposal systems, rainwater harvesting and energy-saving designs, and Wi-Fi-powered homes. The New Age homeowner has their eyes on these luxurious, smart homes that are becoming the norm rather than the exception.
The vast majority of the millennials looking to invest in luxury homes are now in their 30s and 40s. These are people who are starting families and are looking to put down roots. Investing in a high-end residential apartment provides them with a social fabric that they can relate to. Premium homes in central locations come with the advantage of an excellent social infrastructure – schools, parks, shopping malls and arcades, dining and nightlife options, and medical facilities. Premium housing projects come with in-house children’s play areas, retail shopping facilities, ATMs, and even medical centres.
Younger millennials have one great advantage over any other demographic when investing in premium homes – time. Investing in a luxury residence may incur an EMI that makes up a major portion of their income. But then, with time, their incomes are expected to grow. They can expect to pay off their home loans by the time they are in their early career years, and by this time, the asset value is also expected to have appreciated considerably. With the demand for luxury homes on the rise, the property is a great way to create wealth for the millennial homeowner.
Conclusion
Premium gated communities have much to offer homeowners besides a luxurious lifestyle. The high standards of security, health and fitness facilities and a social environment of like-minded individuals are now precisely what the millennials seek in their upscale home projects. And builders and real estate developers in major cities are coming up with excellent offerings to suit the needs of this new generation of home buyers.
