How Millennials Are Driving the Luxury Real Estate Market
| LAST UPDATE 03/01/2023
The millennial generation is revolutionizing the real estate market with their quintessential approach to buying property. Unlike previous generations, they view a house as an indulgent investment rather than just a commodity. This mindset has led them to have specific needs and expectations when it comes to choosing a home, and they are not afraid to aim higher than any generation before them.
When it comes to choosing a home, millennials seek modern and smart amenities that are at par with global standards. They want smart spaces that allow them to work from home while also offering expansive green open spaces, culturally vibrant entertainment zones, wide balcony areas, "My spaces" for personal time, and secure and sophisticated digitally-enabled surveillance systems. Additionally, they seek homes that offer a complete integrated living experience with diverse amenities such as clubhouses, children-friendly pool decks, gymnasiums, diverse fitness studios, state-of-the-art libraries, spacious community halls, and integrated sports complexes.
Millennials are also digitizing the home-buying experience with virtual tours, digital appraisal scheduling, virtual inspections, and remote notary services. Proximity to the workplace is no longer their top priority; connectivity is now the leading criteria for buying a home. The desire for deluxe housing reflects the millennial mindset. They do not rush into buying a home but wait before taking the plunge and investing in premium quality products. According to recent studies, 66 percent of millennials view investing in homeownership as a stable long-term investment, while 30 percent cite social status as another motivating factor that led them to invest in homes. This shift in mindset among millennials is driving significant change in the real estate industry. With their illimitable desire for modern holistic lifestyles and increased purchasing power, more and more millennials are investing in integrated real estate properties. The growth of the global real estate market depends on this shifting trend which saw $400 billion dollars in 2022.
So, aspiring millennials are driving growth in the real estate market by demanding luxury homes that meet their specific needs and expectations. Their fearless audacity leads them towards investing in premium quality products while digitizing their approach towards buying homes. The global real estate market must adapt accordingly if it wishes to continue thriving amidst this shifting trend driven by millennials' aspirations towards modern holistic lifestyles.