Residential demand today is at a decadal high and underscores the evolving dynamics of the real estate market, driven by a combination of economic factors and buyer preferences. According to Magicbricks, residential demand has surged by 23.8% over the past three years across major metros.

An in-depth analysis reveals that one of the significant contributing factors to this remarkable growth is the increasing interest of Generation Z (Gen Z) in the housing market.

Born in the late 1990s, Gen Z is increasingly becoming influential across social and economic realms, and being recognized as innovators, change-makers, and trendsetters. As “digital natives” GenZ have grown up in an era dominated by smartphones, social media, and instant access to information. These tech-savvy individuals are accustomed to instant communication, transparent dealings, and technology-enabled efficiency. Being particularly attuned to the benefits of digital innovations, GenZ are helming new trends in every sector, and real estate is no outlier.

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In 2020 and 2021, many GenZ seized the opportunity presented by low-interest rates and the rise of remote work to enter the housing market. This marked a departure from the previous association with the rental lifestyle to embracing homeownership on a global scale. Magicbricks’ recent Housing Sentiment Index uncovered that Gen Z are displaying bullish sentiment (159 on a scale of 0 to 200) towards housing aspirations.

Their unique perspectives and preferences are transforming the way we see homeownership, which was traditionally regarded as a symbol of generational wealth. Hence, understanding these changes is crucial for developers to cater to the evolving market.

Green Homes: A Step towards Sustainability

According to Deloitte’s reports, 95% of Indian Gen Zs and Millennials are actively striving to reduce their environmental footprint. This commitment to environmental sustainability is also becoming a consideration during their home-buying decisions.

Sustainable homes are designed to minimize environmental impact and promote energy efficiency. These homes incorporate eco-friendly materials, energy-efficient systems, and sustainable practices to reduce their carbon footprint and enhance the quality of life for their occupants.

For example, Shapoorji Paloonji’s project in Chamrajpet (Bengaluru) has a rainwater harvesting system to utilize the heavy rains in the city. Similarly, Godrej’s Parkbridge project in Pune has established a 1 hectare vehicle-free green zone. Such projects that may implement water-saving fixtures, rainwater harvesting systems, or use sustainable, non-toxic, and recycled building materials and integrate energy efficient materials, are certainly gaining traction amongst Genz.

Modular Spaces

GenZ are showing a strong preference for modular spaces in their homes, driven by their desire for flexibility, efficiency, and personalization. For example, modular furniture and room dividers allow them to easily reconfigure their homes, whether they need a home office, a workout space, or a guest room. Modular spaces are also gaining popularity as a more affordable solution for young homeowners or renters who might not have a large budget for furnishing their homes. Similarly, open floor plans and multi-functional fittings are becoming more popular as they maximize utilization of space to meet the dynamic and ever-evolving lifestyles.

Tech Integration

The smart generation prefers smart homes. They are at the forefront of embracing technology in their homes, seeking features that enhance convenience, efficiency, and connectivity. Especially with products like voice assistants, smart home systems that allow them to control lighting, heating, cooling, and security systems remotely have become a priority. Similarly, GenZ are drawn to homes that support a healthy lifestyle through technology.These digital natives are transforming the homebuying experience, making luxury living more accessible, efficient, and environmentally friendly than ever before.

Community & Sense of Belonging

GenZ are increasingly prioritizing community and a sense of belonging when searching for places to live. This shift reflects their lifestyle preferences which emphasize social connections, inclusivity, and shared experiences. With growing focus on work-life balance, GenZ always prefers communities that support a healthy lifestyle.

Consequently, there is a clear preference towards living in mixed-use developments that integrate residential and commercial spaces. These developments often create vibrant neighborhoods where people can live, work, and socialize within close proximity, enhancing their sense of belonging. With access to parks, recreational facilities, and social spaces where they can relax and interact with others outside of work, multistorey apartments are becoming more popular as compared to villas and independent homes. According to Magicbricks’ latest Housing Sentiment Index, there is a clear preference for multi storey buildings in gated communities, reflected by a sentiment index score of 149.

In essence, as stewards of the future, Gen Z are assuming the role as active advocates for improved livability index. With this generation emerging as a significant force, it’s inevitable that upcoming residential projects and developments will need to prioritize their preferences and be future-ready.

(By Sudhir Pai, CEO, Magicbricks)

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