Affordable Housing is the first choice of millennial investors which is set to change the trend of realty sector in the coming years. As per reports, homebuyers instead of searching for bigger and premium projects, millennial these days prefer to opt for smaller units that are more affordable when it comes to buying a house. Therefore, more and more developers are settling on the average unit size of apartments to make them affordable and attract the millennial homebuyers.
A recent report stated that less than 5% of the millennial buyers prefer to buy a home priced over Rs 1 crore. Around 39% of the respondents, who wished to buy homes, prefer to buy a budget property within Rs 40 lakhs. About 44% prefer to buy homes ranged between Rs 40-80 lakhs and 13 per cent of the respondents indicated buying homes ranged between Rs 80 lakhs-1 crore. It also noted that millennial in India currently represents around 46 per cent of the total workforce with a spending capacity of around $3.6 billion. Alongside other industries such as retail, consumer appliances and automobiles, they are growing to play a crucial role in fuelling home demand as well.
Mr Pradeep Aggarwal, Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, Founder and Chairman – Signature Global India Pvt. Ltd. said, “Affordable Housing has emerged as a boon to the millennial homebuyers, they can easily afford and have a house of their own without digging a hole in their pockets. Reduced flat sizes have lowered the burden on the homebuyers as property sizes are proportional to the square feet area thereby lowering the cost of the apartments. This has shown an increase in the demand for Affordable Housing and merging its position as a pivotal force in driving over all real estate demand.”