Born in the era of information and technology, millennials are showing a keen interest in investment and growth. With the digitalisation of socio-economic sectors, this tech-savvy generation knows all the tools and platforms to create and secure a stable source of income. The real estate industry has also observed strong participation of millennials who are redefining its scope and reshaping its functioning. As a result, real estate companies are changing their focal point to provide popular and in-demand needs to this generation. Since millennials are known for a fast-paced life, they always look for quick and hassle-free real estate offerings which suit their interests. Therefore, they resort to online or digital real estate websites, which provide multiple options for a quick and convenient modern lifestyle. This is the era of millennials, as they have proven to be intelligent investors who are nimble-witted in their journey to own real estate. They are the future of the real estate industry by shaping and changing its overall dynamics.
Who Are Millennials?
Millennials, also known as Generation Y, are individuals born between the 1980s and early 2000s. This generation is well-informed and proficient in using modern technology and innovations. This generation is grown during the internet and social media age, making them the most connected generations of all time. This generation is shifting and bringing the socio-economic markets on a fast track due to their fast-paced and technology-oriented approach to life.
Millennials Impact on the Real Estate Sector of Pakistan
Pakistan has a massive population, a large portion of which is youth. These are the future consumers, making the big companies and brands adapt to the latest trends set by them. Millennials are the major contributors to the real estate market worldwide, and their influence is also growing in Pakistan’s real estate sector. Despite inflation, their demand for houses in big cities is ever-growing. The reason for that is this generation is becoming financially independent and prioritising investments in the real estate sector. Therefore, they browse the internet to make sound investments. As a result, real estate companies are turning digital by making user-friendly websites, mobile apps, and social media pages to target this generation. These companies provide virtual tours through VR-AR technology to develop a larger pool of millennial clients.
62% of the millennial population in Pakistan prefers buying a property instead of renting. This generation’s interaction with technology and easy internet access are directing their interest in buying and investing, similar to the old age group. Also, 75% of online property hunting in Pakistan is done by the millennial generation on social media and other websites, making them the largest group of online property hunters. Moreover, by 2025, 75 % of the workforce will consist of the millennial generation. This is increasing the influence of millennials in the real estate industry, emphasising that the real estate industry should undergo a complete digital transformation. Millennials will shape the future real estate market; therefore, changing with the upcoming trends is the best strategy this industry can adopt.
What are the Real Estate Trends Set by Millennials?
Shift From Homes to Apartments
Millennials are known for their fast-paced life. Therefore they look for houses that are easy and convenient to live in. Small houses, preferably built in vertical development, are easier to clean and maintain. Moreover, issues like a power outage or water management are taken care of by the authorities in such developments. Thus, they are in high demand. On the other hand, homes are big spaces that require high maintenance and more responsibilities. Therefore, the millennial generation prefers apartments over homes. As a result, real estate developers are focusing more on vertical developments or micro-housing schemes with the latest amenities to attract this generation.
Online House Hunting
This tech-savvy generation looks for everything online before making a purchase. Therefore, real estate companies are forced to shift from traditional to online practices to keep up with this fast-paced generation. The availability of real estate apps and websites with all the services of property listings, buying, selling, and inspection is making the competition grow in this industry. A company that has successfully built a brand identity among this trend-setting generation is more likely to stand out.
Communication Mediums
Gone are the days when people used to fix meetings with real estate agents or developers to invest. Generation Y heavily depends on mobile phones for various purposes, including communication. Most prefer to communicate via texts, phone calls, or emails. Therefore, real estate companies are adapting to electronic communication. They are introducing features like live video streaming, visual house tours, and high-definition photographs to attract potential customers.
Location
Most Gen Y prefers affordable accommodation close to the workplace. They look for communities that provide aesthetically pleasing lifestyles that suit their personalities and requirements. As a result, real estate companies are developing affordable housing schemes within the premises of metropolitan cities with futuristic designs. These projects provide easy commutes and limit the distance from offices or workplaces.
Technology Oriented Homes
Millennials have grown in the age of technology and social media, which dictates and influences their choices and decisions on how, when, and where they want to live. Outdated and conventional investment features repel them. For that reason, real estate companies provide technology-friendly houses with an updated and modern security system. The availability of features like voice-automated instalments and devices is a distinguishing feature attracting prospective clients.
Low-Budget Strategies
Millennials investing in the real estate sector does not mean they have a huge budget. Most of them are new to the experience and spend money on their first homes. Consequently, real estate companies are marketing low-budget projects online which are easily affordable by this generation. Moreover, these projects have energy-efficient resources that lessen the utility bills. The property is not fully upgraded to reduce the costs. Some of the changes are left for the new owners.
Changing Layout According to Demand
People belonging to generation Y have different preferences, such as demand for spacious apartments or location-specific homes where the availability of fast internet connection is possible. For them, additional benefits matter more than the size of the home. Therefore companies are making apartments with multipurpose layouts, which could be used according to the client’s requirements. This generation prefers easy-to-maintain compact spaces more suited to their modern life.
Environment Conscious
Climate change and global warming have resulted in a more informed and environment-conscious millennial generation. They prefer companies and brands that practice sustainability and give back to the environment in one way or another. As a result, real estate companies are adopting green practices and making sustainable living spaces to attract this generation.
The Way Forward
The real estate sector of Pakistan has great potential. It must transform digitally to keep up with the demands and trends set by millennials, as they are the future trendsetters of the market.
Adaptability to electronic communication and providing a hassle-free and transparent real estate experience to this tech-savvy generation will lead to more investments and profits for the company. The more services a company will provide online, the more popular and in demand, it will become among prospective clients.
Real estate companies should present themselves as reliable sources to this curious generation. Proper guidance and expert opinions in the form of web content, research articles, the company’s record, and social proof will establish a larger pool of clients for the company.
The government should introduce new policies that bring newness to the real estate sector by updating and modernising it. Moreover, these policies should follow the changing demographics and demands of the millennial generation.
Conclusion
The rising millennial population is changing the dynamics of the real estate industry by having a clear vision of what they want. Due to their buying power, they are setting new trends in the socio-economic sectors, including the real estate industry. This tech-oriented generation has forced the digital transformation of real estate companies. They have emerged as a driving force, pushing the real estate industry to mould and adapt according to their demands and needs.
References
Infozonepk. (2015, November 9). Retrieved from infozonepk.com: https://www.infozonepk.com/2015/11/09/millennials-largest-group-of-online-property-hunters-in-pakistan/
netmagstaff. (2015, November 27). netmag. Retrieved from netmag.pk: https://netmag.pk/pakistans-millennials-prefer-buying/
Timmes, M. (2022, June 27). Forbes. Retrieved from forbes.com: https://www.forbes.com/sites/forbescoachescouncil/2022/06/27/millennials-and-gen-z-now-is-the-time-to-reshape-businesses-to-harness-their-power/?sh=2f23a46a5c98
Leave a Reply