Millennials, the demographic cohort born between 1981 and 1996, are playing a huge role in the housing market, a new report has shown.
According to a recent report by NoBroker, millennial age group is redefining homeownership, emphasizing wealth-building and early stability rather than traditional milestones.
NoBroker’s half-yearly report reveals a notable 23% increase in homebuyers aged 25-35 using its platform. Those under 45 years old now account for 57% of total buyers, marking a substantial shift in the market dynamics traditionally dominated by older age groups, as reported by the Hindustan Times.
For millennials, property ownership is not merely a life milestone but a strategic move towards building wealth and achieving financial stability. Many millennials are employed in the private sector and live in nuclear family setups. The report highlights that about 67% of the 11,000 respondents surveyed by NoBroker come from dual-income households, reflecting higher disposable income and greater financial independence.
Millennial Preferences
Millennials are showing a growing preference for 1 BHK and 3 BHK units. The report notes that 39% of respondents are looking for 1 BHK apartments, while 33% prefer 3 BHK units.
This indicates a shift away from the previously popular 2 BHK units, with millennials seeking either compact living spaces or larger homes that cater to their modern lifestyle needs.
Location remains a crucial factor for millennials, with 49% of respondents prioritizing it when choosing a residential property. Major urban centers such as Bengaluru, Mumbai, Pune, Hyderabad, Chennai, and Delhi NCR are key areas of interest for this demographic.
The report also highlights a rise in female homeownership, with 32% of women investing in real estate as sole owners or co-owners. This increase is attributed to women achieving greater financial independence through careers and entrepreneurship, as well as cultural shifts and government initiatives supporting female property ownership.
A significant 60% of millennial homebuyers prefer under-construction properties, betting on potential capital appreciation. This trend is driven by current market conditions where builders charge premiums for projects nearing completion. The preference for under-construction homes indicates millennials’ confidence in future property values.
Impact of Rent Inflation
The report points out that rent inflation in India is surpassing annual salary increments, creating a challenging environment for tenants. This economic pressure is driving more millennials to consider homeownership as a more viable long-term investment.
In response to these trends, real estate developers are tailoring their offerings to meet the evolving demands of millennial buyers. Modern projects now feature IoT-powered amenities, emphasizing functionality and convenience. Developers are increasingly focusing on what millennials value—digital-savvy, value-conscious living that aligns with their lifestyle.