The term "millennial" refers to those who were born between 1981 and 1996, which, in a developing nation like India, represents a large number of people. The largest generation in India is millennials, who make up 34% (or 440 million) of the country's total population.

The real estate market pays attention when a sizable portion of the public decides to engage in housing all of a sudden, after avoiding this investment category for a while. Indian millennials unexpectedly started buying homes after the COVID-19 outbreak. Initially, developers and brokers believed that this trend was solely the result of working from home (WFH) and that it may disappear once the transition back to the office takes hold, but it is still a major influence in the market.

The demographics of homebuyers in India have shifted significantly during the past few years. Millennials aged 30 to 40 are increasingly investing in real estate, therefore altering India's housing market. It would appear that the COVID-19 pandemic has made everyone aware of the need for homeownership as a result of changes in social norms and work-from-home models.

Consequently, Indian millennials are currently pursuing homes in suburban areas that are more inexpensive and roomy. Additionally, accessible house financing choices and rising disposable income have led to a shift in millennials' attitudes and a willingness to invest in real estate.

What Are Millennials Looking For In Their New Homes?

• In earlier years, India's millennial homebuyers preferred residences near their workplaces. Small-format housing projects in and around IT centers increased dramatically. Today, 1.5, 2, 2.5, and 3 BHK homes are more popular than micro-homes in these areas.
• Millennials want smart home features too. These tech-savvy customers seek smart homes. Millennials have revived demand for green homes with fewer environmental effects during building and use due to their awareness of today's sustainability issues.
• Millennials value health. They choose less polluted, greener regions where developers have preserved the local vegetation and fauna.

How Is Technology Affecting The Millennials' Homebuying Journey?

In the post-COVID era, technology plays a crucial role in encouraging millennials to purchase homes. During the pandemic-induced lockdown, several Indian real estate enterprises moved to virtual media due to government-mandated social distancing regulations. In the aftermath of the epidemic, PropTech has been a lifeline for the real estate business, allowing it to survive the global health disaster. The use of information technology to facilitate the research, buying, sale, and management of real estate transactions is known as property technology or PropTech.

Millennials are a tech-savvy generation that demands quick gratification in everything they do, including internet shopping and home purchases. The development of technology has made quick service available to millennials. There is a tremendous opportunity in real estate for the next generation of consumers, the millennials, who desire smart devices and homes.

To remain competitive and ahead of the curve, real estate firms are adopting cutting-edge smart technologies to meet the needs of millennials. Real estate agents around India are replacing traditional methods with digitalized ones in order to collect results-driven data on their clients in real-time, hence enhancing customer experience and strengthening client relationships.

Powered by Artificial Intelligence, Augmented Reality, Virtual Reality, and Robotic Process Automation, real estate technology has revolutionized the market in numerous ways. Real estate virtual tours and internet transactions are two technological advancements that are altering the real estate sector. Moreover, the prevalence of online contracts between builders and buyers is increasing, hence streamlining real estate transactions.

In addition, the usage of property search portals has gained popularity among millennials, making it easier for them to find their dream home using their mobile devices. Prospective Millennial homebuyers pay a great deal of attention to real estate firms that utilize PropTech because all property-related information is readily available online.

Role Of Technology In The Present And Future Of Real Estate

• Using Virtual Reality and Augmented Reality to Connect Buyers and Homes

Utilizing VR/AR technology in real estate has helped agents to increase revenue, acquire new clients, and provide exceptional customer service. Virtual Reality (VR) and Augmented Reality (AR) integration into a website or app can be a significant addition, as the majority of millennial homebuyers choose to purchase their houses online using mobile applications. For instance, an augmented reality (AR)-enabled app notifies users when they are near a potential property that matches their search criteria. Moreover, a VR/AR system allows prospective buyers to visit a property online via a customized 3D walkthrough. Using VR/AR technology, pictures and videos of a property are combined to generate a virtual area that closely mimics its actual counterpart.

In addition to saving prospective homebuyers time, virtual reality solutions reduce the amount of time they spend browsing uninteresting houses. Also, virtual reality can assist in smooth online contact by allowing clients to provide feedback or ask questions about a property they are considering, resulting in enhanced client engagement.

• Making Headways in the Real Estate Sector: Metaverse

Several real estate firms have recently made investments in the metaverse. Metaverses are 3D virtual environments created as cutting-edge platforms for social interaction. Social networking, virtual reality, and augmented reality are all combined in a metaverse to improve the user experience and appeal to Millennial home buyers. Despite being a novel idea, it has the ability to open up an array of new opportunities in the real estate sector.

• AR and VR will be the Future of Real Estate

VR and AR have not only revitalized the country's real estate industry during the COVID-19 pandemic, but they have also contributed value to the industry by attracting millennial homebuyers and helping agents stay current. Real estate has been revolutionized by technological advancements, making it more user-friendly, convenient, and trustworthy. As more and more millennials use AR/VR to hunt for houses, these technologies are proving advantageous for the real estate sector. In a technologically evolved society, these innovations and improvements will increase the competitiveness of the Indian real estate market in the coming years.