Millennials to drive the real estate market in India: CBRE report
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As many as 82% of Indian millennials live with their parents and 25% of these have no intention of leaving the family home, according to a survey on millennials by CBRE Group Inc., the world’s largest real estate consulting firm. Millennials are people who became young adults around 2000.
The survey provides an in-depth look at how millennials live, work and play, and analyses their attitude towards the work environment (office spaces), their living choices (residential real estate) and their consumption patterns (retail).
“Given that by 2020, 65% of our population will be under the age of 35, it is critical that we gain insights into the behaviour of this population class,” said Anshuman Magazine, chairman – India and South East Asia, CBRE.
“The Millennial survey tries to do just that—to understand the implications that this population set will have on different real estate classes. The results are not only insightful, but also contrary to the general perception around millennials. For instance, 82% of the millennials stay with their parents, saving for the future is among their top priorities and a large majority look at real estate as a sound investment opportunity,” the report said.
Here are some of the key findings:
How millennials live:
•82% of Indian millennials live with their parents against 35% in Australia and 61% in China.
•25% of Indian millennials have no intention of leaving the family home.
•More than 23% of Indian millennials currently staying with their parents will move out of their family homes within the next two to five years.
•65% of millennials aspire to buy a property in the future without compromising on the quality of life. Millennials in China and India displayed the strongest intentions to buy their own property in the near future.
•While for Indian millennials, investment is the key driver (at 35%) for buying property, in China it is stability (at 69%).
How millennials work:
•Job loyalty is stronger than perceived. Over 68% of the millennials in Asia Pacific region want to work for the same firm or smaller number of companies during their career.
•While considering a new job, salaries remain the top priority for millennials across all countries. Indian millennials are equally concerned with company reputation (72%) and learning opportunities (72%). However, 68% of millennials in China and Hong Kong are more influenced by the HR policies, leaves, benefits, etc.
•While taking a new job, Indian millennials are very concerned about eating areas/cafeterias (50-55%) within the office premises. In a striking contrast to this preference, China and Hong Kong millennials have high influence of sleeping/resting areas (50-60%), while Australian millennials (40%) are more concerned with wellness/relaxation facilities at their next office.
How millennials play:
•Although spending on essential goods and leisure activities rank high for millennials across the globe, they are also focusing on their savings for future use in India (24%), China (31%), Hong Kong (34%), Japan (22%) and Australia (23%).
•Most millennials prefer getting their products delivered to their homes (70-75%). Product delivery to their office is the second most common response in all the countries except Hong Kong, where 28% people like to collect it from a third party (collection locker or centralized collection point).
•47% of Indian millennials, who expect increase in their online shopping in coming years, will do so because of better return policies and customer care. A wider range of available products is the main reason for increasing adoption in Japan (37%), Australia (45%), China (51%) and Hong Kong (55%).