Millennials driving the demand for organized living in Tier 2-3 cities
October 13, 2020 6:23 PM
Homeownership post-lockdown has emerged as one of the safest and most necessary investments among the millennials, who are keen on taking this big decision as early as possible.
Under property management (PM), it has around 240 million sq ft area, including more than 150 commercial establishments and 80 residential buildings.
The times are changing, and individuals are currently functioning amidst a global reset mode. The shift has not been limited to their professional lives and working criteria but has also brought about a massive change in the basic lifestyle pattern. Pandemic has created a wave of reverse migration and has been a strong force in bringing most of the young professionals close to their homes due to relocation. This has reinstated the importance of security and comfort that a home provides. Homeownership post-lockdown has emerged as one of the safest and most necessary investments among the millennials, who are keen on taking this big decision as early as possible.
The major reasons for taking early decisions of home-buying in Tier II-III cities have been the low home loan interest rates, competitive prices and focus of authorities on smaller cities. National-level programmes such as ‘Smart Cities’ and ‘Atal Mission for Rejuvenation and Urban Transformation (AMRUT)’ have been some of the initiatives taken in the direction of improving Tier II-III cities. The recently launched ‘Atmanirbhar’ campaign promotes entrepreneurship and homegrown businesses among the youth. Start-up culture is also on the rise, which is opening job opportunities for the younger generation even in smaller towns.
Millennials are smart and careful when it comes to their spending capabilities; they are more interested in value for money deals. Staying close to their home is going to be helping them save and grow. The realty developers who have a proven track record of timely deliveries, impeccable post management services and well-planned projects are generally the preferred choices, as this is another added assurance to their hard-earned money. Some of the prominent amenities that the millennial are aspiring for in their humble abodes are-
• Proximity to social structures such as gyms, fitness centres, commercial complexes etc • Greener spaces • Naturally illuminated corners and well-ventilated apartments • Multi-functional homes for their remote working and e-learning • Spacious layouts • Daily Essential shops within premises
This class of buyers has also led to a great wave of change in the realtor’s strategies for promotions and sales. A substantial amount of attention and efforts are directed in designing digital campaigns that promise targeted reach. Traditional practices associated with property purchase and selling are rapidly evolving with the advent of everything turning digital.
Being a majorly end-user driven market, real estate developers have to understand the changing buyer’s preferences and stay in tandem with those patterns. Some of the popular Tier II-III realty markets are Chandigarh/Tricity, Ludhiana, Lucknow and Indore. Currently, the top seven cities hold almost 70% of India’s residential units, with the remaining 30% accounted for in tier II and III cities. The growing demand for better residential projects and real estate reforms introduced by the government in these cities would, however, bring the shift in developer’s choices. Resultantly, realtors with vast portfolio would be banking on monetising the lands held in smaller cities for fulfilling the soaring demand and accelerating capital infusion.