Shalini had thought Debmalya would continue to live in rent but what he said during the office coffee break took her by surprise.
“Buying a home is essential for settling down. A home anchors you in life,” he spoke slowly.
There is truth in those words, but it is tough for Gen Z youth (people born between 1997 and 2012) to buy a property in Kolkata, especially with an education loan that still needs to be fully paid.
Debmalya, Shalini, and their friends have just started their careers and are about to enter the residential real estate market. They have unique priorities, and it is important to understand them.
Let’s discuss how Gen Z youth are going to influence the property market. We will examine how their needs are different from those of older homebuyers.
But let us understand a typical Gen Z homebuyer first.
A Typical Gen Z Consumer
A typical Gen Z consumer has distinctive characteristics:
They are:
Financially prudent
This generation has been toughened by experiencing challenging economic situations. They consider financial caution a necessity. Many Gen Z youth have taken education loans for degrees from top institutes.
Although buying a property interests them they are often wary of taking additional loans when they are just at the beginning of their careers.
Gen Z is attracted to innovative property investment opportunities such as Fractional Property Ownership, Rent-to-Own programs, and Crowdfunded Property Investment. Such approaches allow Gen Z to enter the housing market without the traditional burdens of hefty down payments or long-term mortgages
Digitally comfortable
This generation is tech-savvy and comfortable with digital transactions.
They would rather avail of information about properties, locations, and all related information from digital sources and social media reviews rather than physical interactions.
Gen Z’s expectations range from seamless online transactions to customized property searches and smart contracts. Moreover, Gen Z buyers prioritize a smooth digital experience throughout the home-buying process. Hence, traditional property visits are being replaced by VR tours, customized property recommendations, and secure transactions. They also aspire to instant access to property details to speed up the process, mortgage applications to evaluate their financial capacities, and more, all accessible via their smartphones.
The future of this industry is advanced proptech (property technology) where startups are using AI, big data, and machine learning to personalize home recommendations, predict market trends, and aid the buying experience.
Intent on sustainable living
Climate change is an issue Gen Z grew up with and is, hence, a part of their consciousness. Therefore, properties equipped with solar panels, rainwater harvesting systems, community composting, zero-waste living, vertical gardens, etc., are becoming more desirable for this generation. Real estate developers are now incorporating LEED-certified standards to meet the demand.
Additionally, ideas like net-zero buildings, passive housing designs, and carbon-neutral communities are gaining traction in the trends.
Intrigued by smart technology
Projects with energy-efficient lighting, solar panels, and sustainable building materials are a hit among this group. Also, automation is crucial even in the most basic house of a Gen Z. Being dependent on tech, they prefer properties with tech such as smart security systems, voice-activated assistants, energy-efficient appliances, and remote-controlled thermostats.
Keen on socially-driven spaces
This generation’s home preferences are influenced by their strong ideals of community and social connectivity.
Walkable metropolitan neighborhoods with mixed-use projects, lively social spaces, and shared facilities appeal to Generation Z. This group is particularly drawn to real estate projects that include amenities like social lounges, fitness centres, rooftop gardens, coworking spaces, and cultural hubs.
Priorities in real estate development are changing due to the need for diverse, inclusive, and experience-rich living environments.
The Way Forward
The Gen Z segment is very clear when they buy a property for their use or investment.
They are looking for innovative real estate offerings and as their entry into the property market gathers momentum, their influence on the property market will be substantial.
While they will look for smart tech-enabled homes in sustainable socially active communities they are going to look for new-age property investment options like fractional ownership, crowdfunded properties, and rent-to-own homes.
Another key attribute of their buying behaviour is that they are interested in value-for-money projects and often interested in suitable projects even if it is a little away from the city proper. This is because their lifestyle — work, shopping, leisure, etc. — is far more digitally enabled than the older generations. Generation Z is at the threshold of entering the property market and they are going to have a profound impact on the industry.
