The housing market in India is dramatically changing due to the evolving preferences of millennials and Gen Z. As the notion of comfort and convenience acquires new meanings for India’s working population, the demand for co-living spaces and fully-managed rentals has witnessed a steep rise.
The Indian real estate sector is anticipated to grow at a compound annual growth rate of 17% between 2023-2034 and to reach about Rs 1.5 trillion, as per a joint study by Knight Frank India and the Confederation of Indian Industry (CII). While this growth is fuelled by rising purchasing power and higher disposable income, the mindset shift in the millennial generation seems to be a potent contributing element for such a surge. Unlike fleeting social media trends, the shift in housing preferences is a disruptive change driven by various factors.
A preference for experience over assets
The younger generation’s preference for experience over assets is a global phenomenon particularly pronounced in India. As per a report shared by JLL, 93% of migrating millennials in India’s top seven cities live in rentals, and 67% do not intend to purchase a home.
Urbanisation has led today’s youth to place more value on the flexibility to explore different careers and cities. Home ownership is no more a glaring milestone and is instead considered a hindrance to the diverse experiences that mobility allows and their overall financial liquidity. The limitations of home ownership pose a stark contrast to new-age co-living spaces and managed accommodations that support the dynamic lifestyle of India’s urban youth.
Higher purchasing power & growing desire for convenience
With the growth of sectors like IT, finance, and ecommerce, the average salary for young professionals has risen steadily. The increased financial stability has allowed India’s younger demographic to consider premium and high-quality accommodations as they inextricably fit their aspirations for convenience and experience.
Addressing this rising demand for comfort and luxury, new-age startups have come to the fore with infallible product offerings. These rental accommodations often come with premium features such as professional housekeeping, app-enabled living, doorstep laundry, 24*7 concierge services, security, meals, and more, thus making them a favourable choice for working professionals who seek a work-life balance and want to compromise on neither comfort nor luxury.
A demand for smart-home solutions
For a technologically-driven generation, integrating the latest tech in housing is a must. This generation values quick, straight forward, and hassle-free housing solutions. Sensing and perhaps responding to their needs, co-living spaces and managed rentals adopt cutting-edge technologies into their offerings. From allowing instant access via user-friendly apps to advanced filters to customise their stay, seamless rent payments and even automated controls for everything from lights to locks managed rental enable seamless, reliable, and hassle-free lifestyle for the uber-digital generation.
More than just four walls
While the rising popularity of managed rentals is clear, it is imperative to understand that beyond offering luxurious spaces and amenity-heavy accommodation, these spaces provide another essential element that makes them a compelling choice for migrating millennials. The shared common areas within these spaces become the ideal backdrop for networking and socialising. The sense of belonging offered by co-living and managed accommodations further enriches their luxurious lifestyle. With curated weekly events and bespoke breakout zones not only do away with urban loneliness but afford them a holistic lifestyle experience in their home away from home.
Conclusion
The rapid surge in demand for managed rentals is invariably fuelled by the discerning preferences of the millennials and Gen Z. Moreover, the emphasis on convenience, luxury, technology, and community is not only a testament to the broader socio-economic shift but also anticipates a reimagining of the real estate landscape in India.
(Deepak Anand, Co-founder & CEO, Housr, a co-living startup)
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)
