Millennials are the ones who are in the age group of 25-40 years. These categories of people are mostly amongst the working-class people who have a better considerable experience in jobs ranging on an average from 2-15 years more or less. These people have a dream to aspire to and are keen on growing into their fields. Thus, amongst the home buyers, most people start the journey by getting newly married and are about to settle with the family. Many people in their early 30’s or other late 30’s begin to plan for the future to buy a flat, a car, plan for children’s education, and early retirement investment planning, etc. Thus these people have a small amount of savings; they tend to avail loans from the banks for the purchase of the house. In the COVID times, many people lost their jobs due to the pandemic. In the first wave, around 66 lakh white-collar jobs were affected due to the pandemic. However, many people managed to get back their jobs back and are back on track now. The second COVID wave had comparatively a little impact on the jobs getting affected as people found the new ways of working style through the use of technology, and the impact was comparatively lesser.
Thus as the IT sector is showing strong growth and the manufacturing sales are growing; also the startup companies which employ most of the youngsters are doing far better in their respective fields. Thus the impact on the overall job scenario is positive. The jobs in IT, FMCG, and e-commerce are increasing, and the companies are also providing double-digit growth in salary hikes to the people. Also, the stock markets are performing exceptionally well post the pandemic, which had gone down drastically is showing a positive change. Thus the financial services sector is also performing well. The pandemic impact is slowly reducing, and also now the millennial people are moving towards investments in the real sector. Real estate developers are providing deep discounts to attract buyers to buy the flats, and thus the real estate sector is also showing positive growth post the pandemic. Thus the millennial population is seen buying flats across India in tier I & tier-II cities. The growth for these people is seen in their careers, and thus the plans to buy homes & avail of home loans are growing.
Reasons for the growth seen amongst the millennial population in the case of flat purchases & home loans:
Reducing interest rates:
Banks are keen to lend the loans to the borrowers, and thus the positive growth is seen in the post covid times in the real estate sector. The interest rates are reducing drastically for availing the loans. Thus the buying proposal of owned flats rather than taking flats on rent is seen as more lucrative to the home buyers. The cities like Mumbai, Bangalore, Delhi & Chennai are showing a rise in the apartments’ bookings, and the tier-II cities are also showing positive growth in the real estate sector.
The rising importance of owning the homes:
Due to uncertainty amongst the people regarding their jobs due to uncertainties in the markets, people usually tend to buy their own homes whenever they have a bit of high disposable income in their hands. The ownership of the property gives confidence to the owners, and the buyers can enjoy permanent ownership of the apartment, which can benefit the owners of the property for generations. Also, getting easy finance is one of the major reasons for the rise in the importance of ownership of homes.
Growth of the millennial’s in the post-pandemic times:
In the first wave, pay cuts were happening, job losses & insecurity of employment were there. But in the post-pandemic times, the markets have shown an upward trend, and also the pay cuts have been rolled out, and the situation is back to normal. Thus there has been positive growth been seen in the markets. Also, the stock markets are showing impressive growth; thus, there is a sufficient amount of money in the public’s hands. The millennial population constitutes the maximum working population in India and thus is amongst the major target segments amongst home buyers.
Thus,the millennial populations have been posting impressive growth into their fields and thus are amongst the majority of people amongst the home buyers. The upward trend is seen amongst most youngsters who wish to own their properties, and thus the trend amongst the millennial population for the purchase of flats is growing.