Millennials found a new interest in the real estate industry: Affordable Housing, a prevalent feature of Indian Realty sector that is making the buzz in Tier 2 & 3 cities. USP of affordable housing lies in the name itself, even the middle class can easily afford the structure of a house. No stress of debt and home loans. This is what affordable housing offers and also the prime reason for its popularity. Developers are also eyeing this sector to capitalize their revenues by targeting the millennials who prefer housing that fits into their budget. They are also focused on reducing the size of apartments because of millennials as they prefer smaller homes for a living. Recent reports by Anarock also back this trend where the developers are targeting millennial for the affordable housing segment.
Another revelation made by the study of Anarock is that in the last five years, the average sizes of the apartments have been reduced. This can be acknowledged by the shifting interest towards affordable housing especially for the millennials who prefer pocket-friendly homes well connected with prominent areas rather than banking on luxurious homes situated at city outskirts.
Millennials are different from their previous generations and are comfortable in frequently switching homes in different cities. This rather has become the new norm for millennials who prioritize better career over everything. This also gives them the flexibility of switching homes rather than tied up to a big home that involved huge investments. Affordable housing is becoming a key player in the real estate industry also supplementing its growth. It is catering to the demands of a major portion of the population by giving them affordable homes in metro cities as well as in Tier 2 & 3 cities. Youngsters migrating to different cities for better career opportunities prefer to spend less on their living and then shift to luxury housing when their purchasing power increases.
Eldeco MD Pankaj Bajaj said, ‘ The cost of housing in metro cities are high and it becomes difficult for the commuters to find a reasonable place who migrated from various cities for better job opportunities. Subsequent reforms in the Industry have complemented the growth and affordable housing is one of them. Still, in its nascent stage, affordable housing has a long way to go and it will be interesting to see how it will help the goal of Housing for All 2022 project.’