Inspirational Homes: The Growth Engine of the Next Decade and Beyond

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While migration to cities continues apace, urbanization is also accelerating. An estimated 590 million people will be living in Indian cities by 2030. That’s more than double the 290 million mark in 2001, according to research from the McKinsey Global Institute (MGI).

So, while the demand for affordable housing will also remain strong in the future, we also see that a high percentage of India’s population falls into the upwardly mobile segment. The characteristics of this segment can be broadly defined as follows:

  • Young professionals who travel a lot
  • Age range of 25 to 45 years old (the dominant age group is still 30 to 45 years old)
  • Quite socially active and therefore exposed to lifestyle
  • strong aspirations

So the above set of customers are exposed to the lifestyle, and what they are looking forward to is owning one that fits their budget. Indian markets were, are and always will be price sensitive and customers will always look forward to a ‘more for less’ scenario and this is exactly the type of segment that aspirational accommodations cater to.rs at.

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The recent dynamism in the real estate segment, especially as we move out of the COVID-19 scenario, is clearly driven by more end users looking forward to owning their first home and/or upgrading their home as the trend to hybrid work culture seems to be here to stay. This technically means that if one does not need to travel as much for work, one might as well live in an area that is well connected to the city center or to the workplace, socially well developed, offering a greater circulation area to inside the residence, and is packed with most of the amenities one feels proud of, not necessarily ones that are used regularly.

According to real estate experts, there has been a significant increase in demand among homebuyers in the 26 to 40 age group who are planning to buy or invest in residential properties in the range. aspirations.

So what ranks an ambitious house, what factors are responsible for this demand and what would be the future prospects? Let’s dive deep to answer a few of these relevant questions from the perspective of the real estate industry, which is on the rise.

Comfort and convenience emphasized

Ambitious Homes are known for offering the comfort and convenience of a contemporary residence while promoting aesthetics, lifestyle, sustainability and more.

In fact, several features and conveniences that were previously categorized as luxuries now fall within the scope of ordinary necessities. In all of this, the aspiration for a luxurious and healthy lifestyle remains at the heart of new-age homebuyers. There is more inclination towards themed compact spaces, which emphasize comfort and contemporary lifestyle.

A home buyer longs for modern amenities, which include both external and internal components of a particular residential property. For example, or the exterior form and functions dedicated to spacious entertainment, which includes a well-equipped gymnasium, clubhouse, multi-purpose party room, swimming pool, amphitheater, etc., are evident in these ambitious residential properties. .

Innovative and inspiring in their organic design, Ambitious Residences extend the joys of gated community homes, known for emphasizing form and function as well as comfort.

With all of these, when punctuated with that good aspect of landscaping, such projects are known to make the ultimate difference between a motley group of brick and mortar structures and living spaces that are known for extend enriching experiences, integrate communities and elevate way of life.

Moreover, these residential projects are known to offer much more. Take, for example, a reflexology park, organic farm, and star gazing decks, to name a few, are some of the features extended by these ambitious homes. These modern residential spaces are known for providing a living experience that goes beyond the convenience of location.

In a real estate market that remains price sensitive, developers are able to match the aspirational price while striking the right balance between the two, i.e. development and price. Such developments are likely to work very well in the long run.

Growth drivers in the aspirational home segment

The next generation of homebuyers have begun to invest or buy residential property with workspaces, and this trend is also expected to continue for at least the medium to long term. Although it started as a necessity during the pandemic phase, it is now part of the way of life, with more and more organizations considering remote or hybrid work options for their employees. The hybrid working culture leads to the need to demand more circulation space inside the apartment because more time would be spent inside one’s home with lifestyle amenities. This is, in my opinion, the main driver of growth.

The ability to operate home offices remains a strong draw for Millennials and Generation Z (Gen-Z), who have had to work flexibly or entirely from home.

Over the past two decades, income levels have increased significantly, which has improved the affordability quotient of the upwardly mobile segment. Additionally, exposure to the lifestyle experience – in person or via social media – has grown among the next generation of mostly traveling homebuyers.

Landscaped gardens, wide open spaces, recreational and health avenues, pavilions, swimming pools and parks, libraries and amphitheaters – the list of amenities offered by ambitious homes is quite extensive and developers are very attentive. This two-way confluence of demand and supply has elevated the real estate portfolio to a whole new level, not only in Tier I cities, but also in Tier II and III cities.

Today, young people in the age bracket of 23-25 ​​years are applying for home loans. About ten years ago, this average was around 35 to 38 years.

According to a report, 2BHK remains the most preferred type of BHK for at least 42% of homebuyers, followed by individuals in favor of 3BHK and 1BHK.

In addition, the purchase of a residential property offers substantial savings on income tax, offers high rental returns and given the strict implementation of the Real Estate (Regulation and Development) Law ) (RERA) and other policies, which ensure timely delivery, real estate investments have emerged as safe and secure compared to any other investment portfolio.

Future growth prospects

Millennials, which at 34% make up one-third of the total population and 46% of the total workforce, have become the largest single generation in the country.

According to a report, 53% of millennials and 35% of Generation Z (Gen-Z) respondents plan to use their investment gains to buy a home in the future.

The real estate sector, which is known to contribute nearly 6-7% of the economy, is expected to grow to around 13% by 2025.

Without a doubt, real estate is a smart investment option, provided that you, as a buyer, have a medium to long term horizon in mind. In this regard, aspirational homes have emerged as a segment worth considering as they tick all the right boxes when it comes to fulfilling aspirations as well as comfort and convenience in a living experience of lifestyle.

(By Sriram Mahadevan, Managing Director, Joyville Shapoorji Housing Pvt Ltd)


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