Millennials are today’s biggest living generation. They are multi-tasking, tech-savvy and creative individuals who have defined goals in their minds. In Pakistan alone, young people account for the most significant percentage of its population. This segment includes those born between the mid-1980s and mid-1990s.
Despite the financial hit caused by COVID-19, the real estate industry is undergoing a growth stage right now, and catering to their evolving consumer base should be a priority to expand their businesses further. They are an important market for all brands in all industries, so the real estate sector is no exception. Globally, they now rank as the leading segment of its consumers, especially since the prime age of first-time homebuyers is 26-35. Even the demand for rental places has gone up; homes for rent in Islamabad especially are at an all-time high because of this young demographic.
Digital Consumer Experience
The most significant change brought about by the rising millennial consumer base is the adoption of technology in an industry’s processes, products, models and strategies. The coronavirus pandemic especially increased digital use and options.
Real estate was one of the last industries to incorporate technology. This has revolutionised the house-hunting process. Proptech (property technology) utilises information technology to help people invest, buy or sell the property. Big data and artificial intelligence algorithms can help personalise the customer’s experience.
It is important to extract value from such technologies and target the customers more effectively to attract the millennial market. This would also make the real estate company seem more competent and up-to-date than competing agencies.
Millennials are very detail-oriented and seek more information to make informed decisions, so it is crucial to provide them with as much relevant material as possible. They tend to use the internet to look up properties or hire rental agencies. Hence, online listings should be improved by including high-quality photos and videos; detailed property information; contact information; interactive maps; any additional perks etc. Websites also need to be mobile-optimised, and mobile applications should be developed. Virtual tours would allow your buyers to view your property and set you apart from your competitors.
Millennials are also collaborative and heavily influenced by their peers, so online reviews and testimonials can be a huge advantage in increasing the appeal of your property.
Even the means of communication have changed: they prefer communication through digital means for follow-up questions, and phone calls or in-person meetings are only reserved for urgent matters.
The millennial generation grew up in the digital world; hence, their preferences are different from preceding generations. Social media especially dictates their choices of where and how they want to live. They are accustomed to comfort and convenience; any outdated property features would only turn them away. So it is important to be aware of the latest technology trends and implement them in your homes. There are many smart home devices available in the market now that offer security, safety, energy efficiency etc. These can be voice-activated devices, automated security systems – anything that can be a solid distinguishing feature of your home, compared to other houses of the same range in the market. If you are looking to upgrade your home, it is smart to invest in one such appliance.
Changing Layout Preferences
Home values have changed drastically for the millennial market, especially throughout the coronavirus pandemic. For instance, millennials now mostly work from home (plus, they also tend to take up more freelance work). Hence, they might prefer more office space in their potential home or specific locations where installing a fast, reliable internet connection is possible.
Recent research data also shows that size does not matter as much to them as the additional benefits. This includes open home layouts as they are easy to maintain, and the space can be used for multiple purposes. The recent trend of buying or renting apartment complexes instead of housing societies in Pakistan’s major cities also confirms this – millennials prefer compact, independent spaces that are more practical for their modern lifestyles.
Just because they make up the biggest generation of homebuyers today does not necessarily mean that millennials have high budgets. After all, most of them are only looking to buy their first home. An effective strategy to market to them is by keeping an affordable budget – this can be accommodated by leaving some of the upgrades of your property up to them. Installing energy-efficient technological devices in your property would also be an attractive feature for this environment-conscious demographic – plus, it would drastically reduce their utility bills.
Millennials have become a major part of the real estate landscape, which is why it needs to shift to accommodate their wants and needs. The sheer size of this demographic, along with the fact that they are just entering into a new stage of life by starting their families and accumulating their capital, means that this is only the beginning of the millennial housing demand. Analysts expect millennial consumers to bolster demand in the market for years to come.
Before, real estate agents would provide value by giving relevant information. With these details already available online, millennials seek real estate companies to help in negotiation and facilitate the process for them in a fast-paced world. Graana is one such agency that can guide you through the process – you can visit their website here for more details.