Builders have a new mantra: homes for millennials
Developers want to build smaller and compact homes based on the concept that millennials wish to enjoy life and don’t want to commute. Tailor made options are being designed for those who love to travelreal estate Updated: Nov 29, 2016 19:30 IST
In the next four years, 65% of India’s population will be under the age of 35 and it is, therefore, not surprising that millennials are figuring in many developers’ future planning strategies. Homes being designed are compact as millennials are known to not fancy long commutes and stay close to work. Tailor-made homes are being designed for young people who are not too fussy about things.
CapitaLand’s wholly owned serviced residence business unit, The Ascott Limited (Ascott), is unveiling Lyf, which targets 10,000 homes by 2020. Lyf residences, designed for and managed by millennials, aims to seize opportunities in rising trend of co-living and co-working
The brand is tailored for technopreneurs and individuals from startups, music, media and fashion. With the rising trend of co-living and co-working, the company is planning to have 10,000 units under the Lyf brand globally by 2020.
“We envisage that key gateway cities like Mumbai, Delhi, Bangalore and Hyderabad will have a catchment for Lyf. These cities have an environment which supports innovation and where creative individuals thrive. Renowned leisure markets like Goa and Pondicherry that attract domestic and international millennial travellers, will also be a good base for the Lyf brand in India,” says Ajit Koushik, Ascott’s area general manager for India.
A typical Lyf studio would be sized between 14 to 18 sq m and will be priced in the budget to mid-range category depending on the city and location. These properties will have ‘Connect’ communal spaces, co-working areas that can be easily transformed into zones for workshops or social gatherings. Residents can also use the Wash and Hang laundromat and play a round of foosball while waiting for their laundry to be done. The Bond social kitchen is where guests can prepare home-cooked meals, take cooking classes and socialise while learning more about global cuisines from other residents. These properties will incorporate interactive digital art pieces or even giant ball pits and hamster wheels.
In Central Park Resorts in Gurgaon, the company Central Park is planning to introduce 500 sq ft apartments within the project for young homebuyers. “The concept is based on a premise: ‘We work, we enjoy ourselves, we live and we don’t commute’. Clients will be able to use the common drawing rooms, dining areas, eating facilities on a pay as used basis. Prices of these units will start at Rs20,000 per sq ft. Buyers will have to pay 35% at the onset and 65% during possession. “We are giving them an exit offer. They will have the option to vacate when they wish to, and take back their money. But of course we are not guaranteeing them any appreciation,” reveals Amarjit Bakshi, MD, Central Park.
A report titled The Millennials by CBRE says that over 80% millennials in India live with their parents compared to Australia (35%) and China (61%) and as many as 35% consider investment as a key driver for buying property. The survey provides an in-depth look at what defines millennials as people (live), employees (work) and as consumers (play).
“It is critical that we gain insights into the behaviour of this population. The millennial survey tries to understand the implications that this population will have on different real estate classes. The results are contrary to the general perception around millennials. For instance, 82% of the millennials stay with their parents as saving for the future is among their top priorities and a large majority look at real estate as a sound investment opportunity,” says Anshuman Magazine, chairman – India and South East Asia, CBRE said.
The report describes millennials as generation Rent because 68% who do not live with their parents choose to rent a place. About 56% choose to rent due to financial circumstances and 43% for short -term convenience, the report says.
After moving out of a family home, 32% rent a house and only 26% purchase a home with mortgage, 18% buy a house outright, 10% move into an inherited property and 8% are likely to move into free accommodation.
The survey, conducted across 13 countries, had India as a major participating country. It touched upon millennials’ attitude towards the work environment (office spaces), their living choices (residential real estate) and their consumption patterns (retail).
Millennials view their homes/apartments, offices and shopping malls as communities and places for interaction with neighbours, colleagues and friends, says the report.