Realty News

Millennial Trends Re-defining Real Estate

3Homeownership has always been a major milestone for Indians and the millennials are no different though they have their own set of terms and conditions. Unlike the previous generation home ownership isn’t a goal of life for the Generation Y, but just a part of their high-tech, connected lifestyle as they value experiences over things.

Thus, this dynamic generation doesn’t want to fit into a limited space called home and rather prefer the idea of ‘home’ to accommodate and adapt into their lifestyle. From micro- homes to co-living to theme-based homes, here’s a look at some of the trends that are redefining the residential and working space in the Indian real estate market.

Ease of living
With the blurring boundaries between the workplace and home, desktop and PlayStation, 2millennials look at everything from a convenience point of view. When searching for a new home, millennials prefer an urban location with good infrastructure, which is also close to their workplace as it allows them the luxury to engage in social activities at large.

Ease of technology is also a crucial factor in this case as these digital natives prefer everything smart including their homes.

Value for money

Utility is as much a priority for the Generation Y as cost-effectiveness. Hence, the idea of micro-living or co-living spaces. While micro-homes make perfect sense in space- constrained Indian metros, co-living facilities offer millennials well-equipped accommodation without any botheration of maintenance.

For a young professional who spends 3/4th of their day outdoors, investing their hard earned money into something that they’ll hardly use is a big no.

Independent and well-researched

Millennials are a DIY generation who value transparency more than anything else. These new-age, high-tech buyers are doing their online research and entering the real estate market well-prepared. While searching for homes, 1they make an informed decision choosing quality over false promises. This is the reason why most millennials prefer ready-to-move homes from renowned builders than under- construction property.

Instagram generation

Self-expression and comfort are of utmost priority for millennials. This generation seeks living spaces that reflect their lifestyle and can add to their social profile, which is why they choose small, theme-based pads to big, luxurious bungalows.

Also, a robust online presence and reputation for real estate professionals is a must to appeal to this market.

The new age buyers are carefree but not careless. They are aware of the issues like climate change and want to live with a lower carbon footprint. So, they not only want energy-efficient homes but will also not shy away from paying extra for that.

The millennial population is not just increasing in size but also in its economic footprint and will be a dominant force in the real estate market in the next five years. This is both a challenge and an exciting opportunity for the developers to reach new prospects.

How do you think the aspirations and dreams of millennials will shape the future of real estate?

RERA houses the hopes of the real estate sector in 2018 and beyond

2017 wasn’t just another year that passed by; it was a landmark year in India’s history – one that can shape the foreseeable future of the real estate industry. Among the more significant developments in a year of reforms for the realty sector was the implementation of the Real Estate Regulation and Development Act, 2016 (RERA), which came into full effect from May 2017. RERA was welcomed warmly by consumers, who have viewed the real estate sector through a cloud of mistrust for many decades. Instances of delayed projects, and ambiguous project specifications in the past had left homebuyers feeling frustrated and helpless. RERA is expected to bring unprecedented levels of transparency into real estate projects and reinstate consumer faith in the industry.

RERA promises to safeguard consumer interests.

In addition to mandating developers to regularly furnish updated information about ongoing projects, RERA will go a long way towards avoiding delays in delivery. RERA will also allow for the speedy redressal of disputes between buyers and developers. Consumers will finally have someone to turn to, in case of any structural defect in workmanship, or issues with quality or provision of services and other obligations within the first five years of the agreement. Developers are required to rectifying such defects free of cost within 30 days of the consumer bringing it to their notice.

RERA will make realtors accountable.

The Act imposes strict rules on developers, aimed at protecting consumers from time delays and financial losses. All projects that are yet to receive completion certificates, or are yet to be launched, will come under the purview of RERA. Under RERA, a developer can only sell flats on the basis of carpet-area; and not at built-up and super-built-up rates. The developer is obliged to keep both consumers as well as the RERA authority updated on the project’s status on a regular basis. If the project is delayed, the developer will have to make good the additional interest that the customers will have to pay their bank. Also, the developer cannot make any changes to the original plan without securing permission from at least two-third of the people to whom flats have been allotted. These, and other provisions of the Act will help in weeding out unscrupulous builders, and allow the compliant ones to flourish.

There will be consolidation in the near-to-long term.

RERA will bring not only transparency and accountability, but also consolidation in its wake. Developers need to be sufficiently funded to be RERA-compliant. Many small and cash-starved developers may have to partner with larger, established players to survive. Moreover, unscrupulous developers – big or small – will have no place to hide. The real estate sector will be more organized, and probably have lesser – but larger and more reliable – developers in the years to come.

Positive consumer sentiment will revive investments in real estate.

Since the Act empowers homebuyers with new levels of protection and information, and a solid institution for redressal of issues, one hopes it will increase their confidence of investing in a home. This, in turn, should increase the demand for housing across the price spectrum, and encourage banks and lending institutions to introduce a larger number of attractive loan offers. The positive consumer sentiment could also rub off on Non-Resident Indians and interest them once again in buying properties in the land they left behind.

Looking forward to a good 2018

If the overall sentiment in the industry is any indication, 2018 will be a good year with increased inflow of investments, better regulation, ease of doing business, and accountability for all stakeholders. The effects of all the policies and reforms implemented over the past couple of years will finally yield results in 2018. Consumers will have the right to expect high levels of professionalism in the real estate industry. This will increase the demand for housing, and encourage fence-sitters to become homeowners soon. All in all, RERA holds the promise of organized growth for India’s real estate sector.