Bhavik Bhandari, CSMO, Ashwin Sheth Group
There has been a noticeable shift in the real estate market with millennials eagerly opting to invest in luxurious properties. Millennials now comprise a significant portion of the workforce, earning higher incomes and are thus accumulating wealth at a faster rate than the previous generation.
According to an industry expert, at least 48% in the age bracket of 25-35 years are positively looking to invest in a home in the next couple of years. This is in comparison to 20% back in 2019, implying that millennials are now looking at real estate as a more lucrative investment.
With rising aspirations and growing financial successes, millennials are reshaping the luxury real estate market with a blend of immersive lifestyle experiences, convenience and sophistication. Many millennials are exhibiting distinct patterns when it comes to considering their first home investment. With a high priority to eco-friendly spaces and sustainability, they are seeking energy-efficient homes with proximity to public transportation. Additionally, millennials are drawn to Mumbai as it offers diverse cultural experiences and vibrant social scenes in its urban environment. Traditionally, single-family homes still appeal to homebuyers, but many are exploring gated community residences and mixed-use developments.
As a trend, today, with accomplished positions, unbridled ambition and entrepreneurial achievements, millennials in the city have elevated social status and are thus investing in the luxury real estate landscape in Mumbai. Looking at the advantageous location near the seashore and good connectivity to the western suburbs via the sea link, there has been an upward trend witnessed in the demand for luxury real estate in South Mumbai. The island city has also seen a high investor interest, especially in the south and central Mumbai with an influx of residential units in areas such as Parel, Lower Parel and Prabhadevi.
Overall, there has been a major trend being witnessed for larger homes rising up to 40% with a predominant need for 3BHKs. This has risen as the millennials have recognized the importance of having dedicated workstations and recreational spaces within their homes, hence seeking bigger residences with better lifestyles at more affordable costs.
Premium living experiences have been a significant driving force for residential demand today. Thus, developers are providing spaces with a range of upscale amenities with services that tend to provide not only a sense of exclusivity but a more seamless and convenient lifestyle.
For marketing luxury real estate to the target group, a better understanding of reaching the audience is essential. To help get a head start, below is a short guide on customizing real estate marketing to the millennials:
Make your brand social media friendly:
Millennials today require flexibility and the ability to seek information when they want. Media consumption varies for each age group, whether from traditional outlets or digital mediums. Millennials are fond of social media – Instagram in particular and the best way to reach them is through short dynamic graphics and native ads that can make maximum impact in a short attention span.
Crafting Customized Engagement Plan- Sell your purpose:
It is pertinent to be creative by formulating plans specific to the attention of the target group. While reaching to a wider group of affluent millennials an emotional or purpose-driven campaign will help connect the messaging to the generation. With a message that resonates with the group, millennials tend to accept advertising content that is directly relatable. A company that builds around its purpose can maintain better homebuyer loyalty, consistency and market relevance.
Targeted media outreach:
Effectively marketing luxury properties requires a comprehensive media outreach that includes diverse media outlets. Millennials spend a lot of time on screens, reading lifestyle publications and online and hybrid portals that rely heavily on impressive visuals. However, it is prudent to implement a strategy that incorporates multiple media to target millennial buyers effectively for a more holistic outreach and brand understanding.
Create neighbourhood pages using visuals:
Use your edge as local expertise in attracting millennial leads by showcasing what the neighborhood has to offer. Ensure to use of visual storytelling that helps attract more eyes to the page and highlights the local demographics of the area.
Build Trust and Credibility – Partner with influencers:
Millennials prefer to trust the content from the influencers they follow. Consider involving lifestyle or luxury micro-influencers and leverage their network to help promote and create a buzz around your project. This will aid the brand in building trust amongst the target audience on the project offerings showcased.
Crafting effective strategies helps real estate developers stand out in the media landscape and target high-net-worth millennials more efficaciously. This is further backed by the understanding amongst the millennials of the long-term value of investing in premium homes; these hold value and offer potential for high returns. The inane need to embrace their success, coupled with the changing dynamics of the housing market along with improved income has prompted more millennials to break through the traditional mold and become proud luxury residence owners.