82% Indian millennials live with their parents due to cultural reasons and rising cost of buying property
High rate of property prices is a key factor behind majority of millennials choosing to either stay on with their parents or renting out a place. This is also a reason why affordable housing segment will prove to be a major hit with this segment of the population, says a new report.
The report titled The Youth Barometer by CBRE released by CREDAI Youth Wing recently at YOUTHCON 2018 in Hyderabad covers three broad areas - where millennials live, where millennials work and how they play. The youth workforce comprises one-fourth of the total workforce in Asia Pacific and are therefore a prominent source of spending power. The research analyzes the behavioural patterns of these millennials and how it impacts the real estate, job and the retail markets. CBRE Research polled over 5,000 millennials across Asia Pacific about their live, work and play ambitions to frame the report.
How millennials LIVE: 82 per cent Indian millennials choose to live with their parents largely due to the cultural upbringing of Asian countries where parents house their children until they get married.. Today, Indian millennials are known as Generation Rent since 68 per cent millennials don’t live with their parents but choose to rent a place.
The findings reveal that about one third or 35 per cent of the respondents identify ‘investment’ as the key driver for buying a property. Overall, beating common perceptions, a majority of millennials aim to buy a home, and while placing the utmost importance on quality of life, they also refuse to compromise on the quality, size and location, further driving trends towards affordable housing for rent and sale, says the report.
How millennials work: Today, millennials account for 25 per cent of the working age population in India. While choosing a company to work for, 75 per cent of Indian millennials consider salary and benefits as the top priority. Additionally, the report finds that about 73 per cent of the Indian respondents are unwilling to travel beyond 45 minutes to their workplace.
Commenting on the report, Anshuman Magazine, chairman, India & South East Asia CBRE, says “Given that by 2020, 65 per cent of our population will be under the age of 35, it is critical that we gain insights into the behavior of this population class. The Youth Barometer report tries to do just that - to understand the implications that this population set will have on different real estate classes. In two years, millennials will make up half of the global workforce. With such a large voice, millennials’ decisions about where they work, how they work and whom they work for will have lasting consequences for the global economy and for real estate”
“We at CREDAI have always recognised the youth as the leaders of tomorrow. With this in mind, our dedicated Youth Wing have been working towards bringing together the next generation of real estate builders and developers. The Youth Barometer report states the growing impact that the youth will have on various sectors especially real estate and further highlights the emerging trends that are being driven by them. The trends indicate an imminent development in the affordable housing sector which works in favour of the PM’s determined aim of Housing for All by 2022 and we, along with our future leaders, aim to continue driving this momentum in the industry,” says Jaxay Shah, President, CREDAI National.