“There is strength in numbers.”
This quote couldn’t be more true than it is with the way millennials are dictating a trend in the real estate market today. The congregation of industry experts in the 4th Asia Pacific Real Estate Summit confirms that millennials, young as they are, are exceptionally vital in the flourishing real estate industry in the country.
Global property website Lamudi tackles the different ways the millennial generation is blazing a new and more dynamic trail that can have enormous impact in the local real estate industry.
1| Millennials have started to rule the workforce.
Millennials are those born between 1980’s and 2000’s, and their behavior defines 21th-century workplace and markets. According to a recent study by PwC, millennials already form 25% of the workforce in United States and account for almost half of the population in India.
The case in the Philippines doesn’t differ that much as millennials account for almost a third of the population, occupying a significant portion of the country’s overall workforce. Data from Commission on Elections report that there are approximately 28 million millennials as of 2015, which more or less confirm that millennials are a key demographic force to be reckoned with in almost all industries.
BPO (business process outsourcing) and IT companies, in general, comprise of a large number of millennial employees. This makes condominiums and real estate properties near or within a township or business district more enticing as it affords millennials shorter travel time to their workplace and easy access to neighboring commercial centers.
2| Members of the millennial generation are getting married.
As they are programmed since their childhood to be achievers, marriage is another arena where millennials can exercise their thirst for accomplishment. They are ambitious by nature and will do things, even get married, just to keep up with their peers.
Though millennials are characterized by their immense desire for freedom and flexibility, most of them are still conventional when it comes to relationships. Age-old Catholic traditions capitalizing on the sanctity of marriage and importance of the family as an institution still have a strong hold on Filipino minds, making marriage immune from the strains of obsolescence and signing a marriage contract a tangible proof of love.
Not soon after the exchange of vows comes the building of a family. This consequently necessitates purchasing a house that couples need not only for privacy but to establish independence from their respective families. Real estate developers are keen on this as they are more and more integrating family-oriented amenities in their design. Properties with children playground, open spaces, kiddie pools, and daycare centers are offered in the market to adequately meet this demand.
3| Millennials are after connectivity.
The foremost thing that distinguishes millennials from other generations is their reliance on digital technology and gadgets. This defining characteristic can be observed in how much they are heavily invested in social media platforms like Facebook, Twitter, and Instagram, among others. As such, it is more likely they will do a research of their potential homes online before going to an open house or approaching a real estate broker. This demands real estate developers to make their online presence stronger in social media sites so as to easily court the attention of this distinct cohort of buyers.
It is also important to note that this affinity to technology compels most millennials to opt for work-at-home jobs and start-up and online businesses, which make them drawn to neighborhoods where wireless communication comes handy.
4| They are prone to wanderlust.
Millennials have a strong appetite to explore overseas and will very much opt for careers that can satisfy their desire to travel and see new places. This millennial trait has contributed to the robust industry of short-term real estate rentals like Airbnb, a peer-to-peer short term rental service and online community marketplace that connects people looking to rent their homes to people who are looking for accommodations.
More and more real estate investors are now taking cue on the popularity of short term rentals that they are refurbishing their homes and property spaces to accommodate vacationers and tourists around the world.
5| Millennials prioritize work–life balance.
Millennials have learned a lot from their predecessors and know that sacrificing themselves to a life of endless toil doesn’t sound appealing. They know that in order for them to be of value to their work, they have to engage in creative pursuits that can distress their minds and help them recharge. This preference is very much taken seriously by real estate developers as noted with mixed-use condominium projects in townships and business districts. Mixed-use properties integrate residential, commercial, cultural, institutional, and entertainment uses in one complex, which helps residents enjoy a work–life–play balance.
The article was written and submitted for publication (as guest post) by Cherianne Luise Mangrobang. She is the PR & Partnership Officer of Lamudi Philippines and MyProperty.ph, two of the country’s largest real estate websites.