Mil­len­ni­als FROM tier ii Cities ARE Aim­ing Big

the par­tic­i­pa­tion of tier-ii cities Mil­len­nial is on the rise as the smaller cities con­tinue to demon­strate a ro­bust growth in terms of buy­ing real es­tate prop­er­ties.

Realty Plus - - Trending - –sreyasi Maity

a ccord­ing to re­cent in­dus­try re­ports, mil­len­nial com­prise one-fourth of the to­tal work­force in Asia Pa­cific and are prom­i­nent source of spend­ing power, as well as ded­i­cated in­vestors, but are the kind who are not given to high risk. Hence hold­ing a con­ser­va­tive na­ture on their hard-earned money, they seek value for money in their in­vest­ment av­enues.

Rapid eco­nomic growth has also led to a sub­stan­tial in­crease in the size of the mid­dle class in In­dia, and the ris­ing house­hold in­comes re­sult­ing in higher dis­pos­able in­comes. About 600 mil­lion peo­ple are un­der 25 years of age. Re­search says that the mid­dle class will ac­count for 59% of In­dia’s to­tal con­sump­tion by 2025. The trend in ris­ing in­come lev­els and propen­sity to spend is not lim­ited to met­ros, but has also spread across tier II cities as well.

Mil­len­nial are fol­low­ing the clas­sic trend of home own­er­ship pat­tern, they stay with par­ents first, then be­come renters, then home­own­ers. Mil­len­nial from tier II cities stay closer to their roots, save more and have a bet­ter lifestyle. The im­mi­nent fea­tures & ser­vices that mil­len­nial of tier II cities are look­ing for are:

“De­vel­op­ers, in their as­pi­ra­tion of mak­ing their homes more at­trac­tive to the buy­ers, started pro­vid­ing ‘spe­cial ameni­ties’ which in­cludes gym­na­si­ums, club­houses, swim­ming pools, RO Wa­ter, Video Phones and some even are pro­vid­ing pri­vate el­e­va­tors and park­ing into their apart­ments. Over time, peo­ple get used to some of these fea­tures which be­come an es­sen­tial pa­ram­e­ter for the fu­ture home buyer.” Ar­chi­tect Amol Prabhu, Part­ner -Shashi Prabhu As­so­ci­ates

Gen­er­a­tion shift im­pacts sales strate­gies

Most of the young gen­er­a­tion prefers to deal with renowned de­vel­op­ers who have a proven track record for con­sis­tent qual­ity and re­li­a­bil­ity along with timely de­liv­ery of projects. Be­ing tech-savy, they are con­scious buy­ers and pre­fer to re­search thor­oughly on the prod­uct be­fore buy­ing it. More­over, the mil­lenial are so­cial me­dia fa­nat­ics and there­fore, the real es­tate in­dus­try is also adapt­ing to mar­ket them­selves dig­i­tally, try­ing to main­tain an ac­tive pres­ence on so­cial me­dia and their web­sites.

The big­gest out­come of this change has been that the de­vel­op­ers have started think­ing like the younger gen­er­a­tion. As a re­sult of which, we see more of on­line, geo tar­geted lead gen­er­a­tion cam­paigns these days, apart from the con­ven­tional ones. In­dia’s as­pir­ing youth and ris­ing mid­dle class from small towns are likely to over­power the real es­tate mar­ket, build brand loy­alty with the de­vel­op­ers and adapt to a fast-chang­ing mar­ket en­vi­ron­ment. sce­nario of Real es­tate mar­ket in­tier-ii cities

Be­ing a part of na­tional-level pro­grammes such as ‘Smart Cities’ and ‘Atal Mis­sion for Re­ju­ve­na­tion and Ur­ban Trans­for­ma­tion (AMRUT)’, the tier-ii cities have ac­cel­er­ated lev­els of in­fra­struc­ture de­vel­op­ment. Devel­op­ments like these def­i­nitely spell well for real es­tate mar­kets. One can pur­chase a home in tier-ii cities such as Bhopal, Ahmed­abad, Luc­know, Patna, Jaipur, Bhubaneswar, Su­rat, Coim­bat­ore, Chandi­garh, In­dore and Kochi.

From an in­vest­ment stand­point, these cities of­fer bet­ter prospects. Re­search shows tier II cities have wit­nessed bet­ter price ap­pre­ci­a­tion com­pared to met­ros. For in­stance, prop­erty prices in Ahmed­abad grew by 8.1%, in New Town (Kolkata) by 6.5%, Nashik (5.8%), Chandi­garh (5.3%) while prices de­clined by 5.8% in Gu­ru­gram, Chen­nai (1.5%), Mum­bai (3.6%), and re­mained con­stant in Kolkata.

The hous­ing prop­er­ties in tier II cities en­joy the ad­van­tage of cost. One can get a 1500-sq ft 3BHK apart­ment in the prime areas of tier-ii cities like Ahmed­abad or Bhopal at Rs 35-50 lakh whereas the same would cost not be­low Rs 70-80 lakh in any large city like Noida, Gur­gaon or Ban­ga­lore.

The ROI and growth rate is al­ways surg­ing, mak­ing the in­vest­ment worth­while. With real es­tate, the over­all in­fra­struc­ture of a spe­cific lo­cal­ity also in­creases and the ROI grows even more. This pure cal­cu­la­tion has been one of the ma­jor driv­ing forces for the younger gen­er­a­tion to look into real es­tate in­vest­ments. Also, change of lifestyle and as­pi­ra­tion are an­other fac­tor that we can­not ne­glect.” says Mr Rishi Jain, ex­ec­u­tive di­rec­tor, Jain Group.

Age group of most home buy­ers from Tier II cities is 25 to 35 years for MMR mar­ket. Most of the pur­chases are hap­pen­ing in sub-inr 2.5 to 3 crore­seg­ment. This gen­er­a­tion is in­vest­ing dur­ing pro­mo­tions, spe­cial pay­ment plans, pre-launches and launches. The lead gen­er­a­tion grew by a huge 242% dur­ing the first quar­ter of 2018 com­pared to the first quar­ter of 2017. Tier II cities, such as Bhopal, Ahmed­abad, Luc­know, Jaipur, Bhubaneswar, Su­rat, and In­dore of­fer bet­ter prospects

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