Millennials want the security of their own roof over heads, finds CBRE

• 70% of millennials prefer to buy a home over renting – a complete reversal of the trend revealed by ‘generation rent’ in CBRE’s last survey.
  
  
• The pandemic is making home buyers yearn for a ‘dedicated space to work’ in their homes.
  
  
• They also seek a dedicated area to support remote working in the community.
  
  
• Except Gen Xers (between the age group of 42-57), most people prefer to live around city centers.
  
  
• Delhi- NCR, Mumbai, Bangalore and Pune are witnessing the emergence of suburbs that may redefine the erstwhile ‘city centre’.

Pandemic has played a big role in how people live or aspire to live. Apart from making Indians want to buy a property rather than rent, the pandemic is making home buyers yearn for a ‘dedicated space to work’ in their homes, as per a survey conducted by property consultant CBRE.

The need for workspace came in second in home selection criteria as per the survey, with the first being quality of property with relation to health and safety. As many as 52% of the survey respondents said that they are willing to move for better quality properties and surroundings.

In fact, price of the property came in as the fifth most important criterion, after sustainability of the property and transportation infrastructure.

With 69% of respondents stating that they would prefer to work at least three days from office, most of them also seek a dedicated area to support remote working in the community.

“With the pandemic having raised the importance of health and safety, the demand for professional property management services, particularly in apartment buildings, has been on the rise. There is also an increasing need for dedicated office space at home as hybrid working becomes more widespread,” said the CBRE report titled ‘Voices from India: How will people live, work and shop in the future?’.

The quality and surroundings of the home is also now more important with better outdoor spaces, smart home technologies, quality of retail and leisure in the catchment area etc.

“Further, families are now laying equal emphasis on a property’s quality and surroundings as on the unit itself. Therefore, attractive and thoughtful interior designs, well-planned outdoor areas and surroundings must now be complemented with remote working infrastructure,” said Anshuman Magazine, chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.

Looking to move – to their own home

The survey found that most of the millennials and GenZs are looking to move to a new home in the next two years – which is 44% vs 31% in the previous two years.

According to the report, “70% of millennial respondents now prefer to buy over rent, a complete reversal of the trend revealed by ‘generation rent’ in our last survey. While India has always been an economy where home buying is preferred over renting, the uncertainty around the pandemic has further accelerated the need for homeownership and security.”

Yet, 40% of GenZs who are in the 18 to 25 age group, prefer to rent. Within that sphere, 20% prefer private rental accommodation while 17% prefer shared accommodation or student housing.

“Since this is the age group that will drive rental accommodation, developers must outline strategies to understand and tap demand well in time,” said Magazine.

But where will they live? With 75% respondents preferring a one-way commute time of not more than 30 minutes, most of them prefer to live around city centres. The only exception is Gen Xers – age group of 42-57 who prefer remote locations.

However, as most cities swell to the seams, the definition of a true city centre continues to evolve. “Most leading cities, especially Delhi- NCR, Mumbai, Bangalore, Pune are witnessing the emergence of suburbs that in many ways redefine the erstwhile city centre,” says CBRE.

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