With changing trends and technology today’s generation has different thoughts as compared to their parents and grandparents to owning the house.
As you drive through any Indian metropolis, you will surely come across with giant billboards selling the dream house in swanky high-rises with all modern amenities, but generation, of today, is not too keen to buy a home of their own.
There are various reasons for such behavior that includes personal preference and economic deliberation.
The Mindset Of New Generation-
Interestingly, a new generation has come to a shift in value and culture. Nearly 40 per cent population of urban India in top 8 metro cities lives on rent, which increase the demand for good rental properties every year. As a new generation, millennials have a very different thoughts on home ownership than their parents or grandparents. Youngsters, as well as working couples, have many other priorities that contribute significantly to the growth of the home rentals – with such exorbitant annual rents in the top cities, however, one of the most important aspects that distinguish the current generation from its previous one is that they are focused on utility and experiences rather than ownership. Thus, a rented home located very near to one’s office place with good connectivity and stable connection is very much desirable to a young professional than an owned house located miles away.
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The EMI-to-rent ratio-
One of the considerations when buying a property is of course affordability. The rent of a certain property is always less than the EMI one would be paying. But when the difference between EMI and rent is not much, then there is a chase for buying the property EMIs help in building an asset. In India due to a relatively higher price of property, the EMI ratio is very high as compared to renting a property due to which staying on rent is more viable than having the owned house.
Co-living space-A new trend-
While renting house is getting more organized, the fact that millennials prefer sharing to ownership and are shying away from home ownership in favor of renting this has given rise to the concept of co-living spaces. Based on the ‘plug-and-play’ model, co-living helps the residents share amenities like wi-fi, phone, housekeeping, laundry, water, entertainment. Also, they share a kitchen, bathroom, living areas, and pantry. It’s like a home away from a home.
With property prices rising in gateway cities, co-living offers residents shorter and more flexible lease terms compared to ready-to-move-in convenience. Along with that comes additional benefits like electricity, water, gas, all-inclusive with the rent. Hence, millennials are willing to pay high premium for their stay in an organized set-up as this saves them from chores like separate bills payments etc.
Given that demand is increasing and there is a relevant supply too, this shows that co-living space is set to grow significantly in the future.
‘Generation rent’ is thus a phrase that is apt for millennials and the real estate industry needs to be well equipped to adjust to this new paradigm.
Making The Millennial Connection-
The millennial consumer also wants to enjoy the modernized, tech-driven rental home-seeking experience. Indian millennials are wired to go the online way for home renting, They use the internet and love to research they know the popular websites and the information they are promoting.
When millennials find a home that interests them, they look at both the street and aerial view on Google Maps. They pore over any photos or 3D virtual tours.Younger consumers will also use the internet to research their agent. Consequently, they demand an agent who is demonstrably smart and resourceful. Reviews and referrals from their peer groups matter to them hence using those reviews, they will decide if you are worth their consideration.
Related Post: Age of Experiences is here: What is Experiential Marketing?
Communicating With Millennials-
Millennials tend to be less patient. They expect quick response time to their questions and concerns. Being attentive to their communication preferences they prefer to text or phone and act accordingly. The property management software should contain up-to-date and comprehensive information where they can learn more about the local market as well as the buying and selling process. If your clients are buying property their first home expect many questions. One should have complete knowledge of the local market to build the trust. So the property management companies should be very expert in addressing the clients requirement and supporting the clients in all the aspects of buying properties on rent also generating a back up for resource information that customers require, so they can access for themselves.
As we move into the future, younger generations of home buyers will share millennial characteristics. millennials will be the dominating generational force in the housing market. You can wrestle with that fact, or you can embrace it and figure out a way to keep up with this cohort of home buyers. Be honest and sincere, authentic, original and empathetic. Demonstrate to your potential clients that you stand for something greater than yourself. It’s important to help them maximize their time, efficiency and money while minimizing their risk.
In order to leverage the right property to the customers the Real Estate managers need to have an online platform which can resolve the customers queries thus MPower is such a online platform to assist the Real Estate companies and manger to manage their properties and guide their customers in right perspective.
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