What millennials want & how UAE’s real estate market must respond.
According to worldometers.info, the median age of residents in the United Arab Emirates is 32.6 years, placing them perfectly in the bracket of the ‘Millennial Generation’. Now that many of the first waves of millennials are reaching their thirties and forties, the generation has finally achieved the purchasing power to rent better and invest in UAE’s real estate.
While there are signs of the real estate market digitizing to engage with millennials through portals like Bayut.com, when crafting attractive real estate opportunities for this generation, the market needs to look deeper and cater to the real needs of this generation.
From design to experiences, Mr. Pamul Sharma, Head of Business Development at Kingsley Properties dives deep into the hearts of millennials.
“Let’s talk money ”
Of course, affordability is also especially important. While their purchasing power is rising, millennials are more financially cautious when investing and will need flexible payment options.
“Beauty is in the eye of the beholder”More than preceding generations, millennials place a lot of importance on design. According to YPulse, a leader in youth research and insights, 34% of 13-39-year-olds describe their home decorating aesthetic as modern, making it the top decorating style among Gen Z and Millennials One major insight is their preference for open kitchens that open directly into the living room. As a generation brought up on Instagram, millennials look for extremely aesthetic designs in their homes and will invest to bring their vision to life. Therefore, the impetus for developers is to create aesthetic canvasses for millennials.
“Call of the wild ”According to a study from COGNITION Smart Data (CDS) for Green Builder Media, wellness is top of mind for millennial home buyers/renters, and smart home technology, home fitness spaces, large yards, and spaces for entertaining/community building are features they’re looking for to complement their “healthy home” mindset. While not particularly tending towards apartments or stand-alone villas, millennials need to be close to the outdoors. A relaxing ambiance tied with landscaped gardens is the name of the game. As a generation that places importance on the concept of self-care, proximity to nature makes properties more attractive. They also wouldn’t mind an amazing view, with large windows to let the sunlight into their homes.
“An all-in-one universe ”When it comes to locations, millennials crave homes with proximity to their offices and must also have things to do. Experience-driven millennials go head over heels for areas with cafes, malls, and other entertainment options. A perfect example of this is Dubai Marina. No wonder the area saw the greatest number of deals in 2021, with 7968 deals made.
“A foundation made with efficiency and practicality ”Another point to note with millennials is that they aren’t obsessed with larger houses. They prefer multifunctional spaces. In light of the wave of work from home options, they would like homes with spaces that could also be home offices. When it comes to the actual size of their homes, millennials go minimal. They shy away from houses with too much square footage, instead preferring to have spaces that are ‘just enough.’
“As usual, Millennials are disrupting the real estate market ”It is time for the real estate market to undergo a true evolution to cater to millennials. Despite the stereotype, this generation craves authenticity and a holistic approach to life. And we must rise to serve them with the perfect home for their lives.