Article by Mr. Anmoll D Shroff, Founder & CEO, Graanth Realty
The demand for premium luxury homes in today’s rapidly evolving real estate market is being led by Gen Z and Millennials. Emerging as dominant forces, the Gen Z and Millennials are seeking more than just a place to live; but homes that offer comfort, convenience, and a sense of achievement. Their preferences are bringing change to the high-end housing landscape, driven by their desire for modern, stylish living spaces equipped with top-notch amenities and cutting-edge smart technology.
Tech-savvy and environmentally conscious, Gen Z and millennial buyers seek homes that reflect their values and complement their lifestyles. They are particularly attracted to premium luxury properties because they offer a complete lifestyle experience. With amenities like gyms, pools, banquet halls, terraces, and game zones all within reach, these properties cater to their dynamic needs, making them a convenient and appealing choice.
According to a CBRE report earlier this year, the luxury real estate segment saw a remarkable 10% year-on-year growth during the January to March quarter across seven major cities, largely fuelled by the buying power of Millennials and Gen Z. This trend reflects their growing influence in the market as they look toward homeownership as a proof of financial security and wealth accumulation.
Post-pandemic, we have been witnessing to a shift in the work culture all over. With hybrid work becoming more common, the younger generation that the freedom of seeking homes that offer either a serene escape or a vibrant community atmosphere, all while enjoying advanced amenities and eco-friendly features. The allure of luxury real estate as a status symbol is also strong, with the digital age we live in amplifying the desire to showcase success and affluence.
As this category of young homebuyers advance in their careers, they recognise the stability and profitability of real estate investments. For them, luxury properties represent not only a comfortable lifestyle but also a sound investment with long-term financial benefits, including the ability to build equity and gain attractive tax advantages. The combination of these factors is why Millennials and Gen Z are increasingly gravitating towards premium luxury homes.
For these young homebuyers, a home is more than just a commodity; it’s a space to grow, nurture relationships, and foster a sense of community. Post-pandemic, there has been a noticeable shift towards properties that offer social connectivity, with Millennials seeking residences in localities that promote a solid community vibe. They prefer residential spaces that feature co-living arrangements like lounges, clubhouses, and co-working spaces.
Millennials and Gen Z’s are not just well-educated; they are also earning more than previous generations and stand to inherit significant wealth. This financial strength has enabled them to make significant investments in the luxury real estate market. Their focus on eco-friendly and sustainable living spaces, along with a preference for energy-efficient homes near public transportation, highlights their commitment to responsible living.
In cities like Mumbai, they are drawn to the diverse cultural experiences and vibrant social scenes that urban environments offer. While traditional single-family homes remain popular, many are now exploring gated community residences and mixed-use developments. This trend reflects the aspirations and achievements of Millennials who, with their elevated social status and entrepreneurial spirit, are reshaping the luxury real estate landscape.
To encapsulate, the demand for premium living experiences among Gen Z and Millennials is giving the high-end housing market a new definition. As developers respond to this trend, they are offering upscale amenities and services that provide not just exclusivity but also a seamless and convenient lifestyle. This generation’s influence on the luxury real estate sector is only expected to grow, further cementing their role as key drivers of this dynamic market.