Millennials Chase Realty In Small Town India

In 2018, six to seven percent growth has been registered in the Indian residential market.

- M Rajendran

Over the past few years, millennials, especially those hailing from Tier II and Tier III cities have been focussing on investing in real estate for a secured return. Even during the volatile markets that we witnessed in recent times, a certain percentage of millennials has somehow successfully shown their inclination to bet on real estate.

According to industry experts, the trend of opting to invest in Tier II and Tier III cities, where real estate prices of both, builtin houses and land is affordable, (especially for millennials) is fast catching up. But how come most of the takers or investors happen to be millennials?

“These days, with an expansion in the service industry, many individuals are beginning to earn at a young age. But, when it comes to investments, we have to look at them with two mindsets. One who comes from a humble background and others from well-to-do homes. Both may have landed with their first jobs which offers a comparatively fatter pay package, but saving patterns for both are drastically different. The urge towards investment comes from the first set of millennials, while the second set wants to live on their own terms and experience life. Hence, they do not wish to be tied down by savings, especially in real estate,” said Ashutosh Bishnoi, MD and CEO, Mahindra Mutual Fund.

“Millennials perceive real estate very much as a consumer-facing product whose market fundamentals are easier to understand and therefore to invest in, especially given the easy availability of home loans, which simultaneously provide significant tax breaks. They also see it as an investment that will keep providing them assured returns,” added Bishnoi.