A report brought out by the CREDAI Youth Wing in association with real estate consultancy CBRE highlights how millennials will drive the growth of affordable housing. The Youth Barometer released at CREDAI Youth Wing Convention, YOUTHCON 2018 highlights the major trends created and driven by millennials, addresses issues such as why millennials live with their parents longer and how millennial consumers spend, save and play.
The result challenges the often believed perceptions.
Comprising one-fourth of the total workforce in Asia-Pacific, millennials are a prominent source of spending power. The research analyses the behavioural patterns of millennials and how it impacts the real estate, job and the retail markets.
CBRE Research polled over 5,000 millennials across Asia-Pacific about their life, work and play ambitions to frame the report.
Commenting on the report, Anshuman Magazine, Chairman, India & South East Asia CBRE said, “Given that by 2020, 65% of our population will be under the age of 35, it is critical that we gain insights into the behaviour of this population class. In two years, millennials will make up half of the global workforce. With such a large voice, millennials’ decisions about where they work, how they work and whom they work for will have lasting consequences for the global economy and for real estate.”
Generation Rent
According to the report, 82% Indian millennials choose to live with their parents largely due to the cultural upbringing of Asian countries where parents house their children until they get married. The high rate of property prices is also a key factor for millennials not moving out.
Today, Indian millennials are known as the “Generation Rent” since 68% millennials, who don’t live with their parents, choose to rent a place.
The findings reveal that about one-third or 35% of the respondents identify ‘investment’ as the key driver for buying a property. Overall, beating common perceptions, a majority of millennials aim to buy a home, and while placing the utmost importance on quality of life, they also refuse to compromise on the quality, size and location, further driving trends towards affordable housing for rent and sale.
Jaxay Shah, President, CREDAI National, said, “The trends indicate an imminent development in the affordable housing sector which works in favour of the PM’s determined aim of ‘Housing for All by 2022’.