Nearly 40 per cent of urban India’s population live on rent in the top 8 metro cities. Millennials shifting to rental options is not a new trend, but why are they called Generation Rent?
Generation rent is the people born after the eighties and prefers to rent a home rather than buy.
Reasons for Generation rent:
The perspective of homeownership differs for today’s generation. Generation rent wants to explore different cities with more exciting job opportunities. The need to have flexibility in choosing the space is overpowering the desire to have a home.
Increased congestion in Cities: Traffic woes faced in the metro cities are not unknown to you all. Finding a place to live near the office is like winning the lottery for many of us, but ever thought of buying a property near the office?. We can’t even imagine?
Millennials don’t want to make Big Investments- Increased popularity of mutual funds has shifted people who earlier prefer real estate investments. Stock market surge and newer avenues to invest due to companies like Zerodha, Groww etc are a huge reason for this paradigm shift. Instead of investing in houses, millennials want to invest in equity and mutual funds.
The growth of housing loan demand is declining because of the huge EMI to rent ratio for all metro cities
But as we are spending more time at home and with major IT companies extending work from home for an uncertain period. Do the current generation still prefer to rent or will they give buying a thought?
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