THE new sunday express MAGAZINE Voices Anand Neelakantan S Vaidhyasubramaniam Ravi Shankar Preeti Shenoy Dinesh Singh Sukhabodhananda Buffet People Wellness Books Food Art & Culture Entertainment AUGUST 4 2024 SUNDAY PAGES 12 Photograph by: Venkatesh Radhakrishnan Zaineb and Hussain Pachmeriwala, who run a family business and a home-based chef service respectively, spent a year and a half looking for a 3BHK apartment that would suit their family of three, which often has guests visiting—their non-negotiable requirements included sufficient space, a building where they felt their children were safe and secure, and proximity to family, all reasonable requirements for anyone. They had allocated a budget of `2.5 crore for this. Eventually, they decided to spend twice the budget Finding the Way Home Indian realty is in a state of flux. Middle-class Boomers find affordable quality homes in metros out of their reach, leading to growth in suburban living at lower cost. Millennials, fearing financial instability, prefer renting to buying homes, while some buy property as investments T By Kasmin Fernandes and Iram Ara ibrahim here is catharsis in India’s real estate sector. The premium housing market has exploded while the middle class finds ‘affordable housing’ a joke, since most of them cannot afford the price tags. Meanwhile, Millennials and Gen Z have a flexible attitude towards housing—some of them stay away from getting a home of their own, and prefer renting even as others see ponying up for a place as an investment. After a lurch during the pandemic in 2020, luxury housing is driving the market. Mumbai architect Vikas Dilawari, who typifies the educated middle-class Indian, is disappointed. He has spent three decades working on heritage structures and earned numerous accolades. His website lists 18 UNESCO Asia Pacific Heritage Conservation Awards. He has restored old, classic residences across the country Ironically, when it came to . buying his own house, it was a nightmare. In August 2017, he had booked a 2BHK flat in a Goregaon project, and hoped to move in by 2019-2020. The project, like so many other in the country, stalled due to land issues, transforming what should have been a joyous occasion into a prolonged ordeal. The rich have got richer from the stock market bull run. Average lower middle-class personal income in 2024 is just `35,000 in metros. The middle class comprises households with an annual income of more than `15-20 lakh. Hence, the average middle-class, middle-income Indian stands no chance of owning a house in a big city without disinvesting savings, taking a loan or selling off possessions. Millennials and Gen Z in India are either postponing house-buying, or treating it as investment, especially after the pandemic. Karan Kumar, a 39-year-old Google professional prefers to rent a floor in Delhi’s pricey Panchsheel Park, paying `1.5 lakh as monthly rent, which is low for the pin code. He sees buying a house as an emotional decision rather than taking a financial call: his wife is keen to get one. “If a house is worth `10 crore and I have the same amount in the bank, I can live well even after taxes,” he points out. His age group invests in Mutual Funds a lot. Kolkatabased 32-year-old economist Soumya Bhowmick says, “Residential property values in the top six cities in India increased by 10-15 per cent in 2023, the highest capital appreciation rate in a decade. It is still lower than annual returns from well-performing mutual funds.” Kumar says that many people of his generation live with their parents and know the house or cash, at some point, will come to them. The reason why the majority of Millennials are either postponing or don’t wish to buy houses is fear of Soumya Bhowmick, a 32-year-old economist believes that most millenials who can afford real estate investments can also establish premium banking accounts. These digital investment options eliminate the need for personal research or trading, while offering higher returns. They also come with added benefits such as no maintenance or transaction costs associated with property buying and the avoidance of bureaucratic procedures in government departments financial instability preference , for flexibility in personal and professional life and delaying marriage. During and after the pandemic, jobs were cut ruthlessly or salaries were halved. “I won’t buy a home because I don’t see a stable financial future. Companies like Google have sacked people ruthlessly; hence Millennials don’t see loyalty to a company worth it,” says Vivan, a design professional based in Bengaluru. High-rollers have a similar viewpoint, but for different reasons. Raunaq Kamath, a successful 38-year-old intellectual property lawyer, who owns his own firm, is of the opinion that “buying a home is a waste of money It’s better to invest the . money and take good holidays when one has the time”. It is not just wallet logic; Millennials travel light: they like the freedom and self-worth that moving cities and jobs gives. Hence, rent, not buy is their , motto. Gurugram-based Raghav Malik, 30, the founder of creative production house Kaamkhor, says, “The quality of life matters to me more than the assurance of owning property . Staying in a rented apartment can save me a lot of money for other experiences. People my age have an Airbnb hangover. The idea of house-hopping, like bar-hopping, fascinates me more than being a house owner.” Millennials are also marrying Turn to page 2 ● Exquisite blend of Big and Bigger ● Carefully curated ● High-speed Indo-Portuguese design, French-Chateau architecture, and African tribal-inspired accessories world-travelled art and decor collectables, evoking a sense of history and nostalgia internet is critical to support remote work and smart apartment features Demand & Supply Sales of luxury housing units priced at `4 crore and above increased by 27% during the January-June period according to Coldwell Banker Richard Ellis, the world’s largest commercial real estate services and investment firm Luxury According to a comprehensive report by Knight Frank India, luxury apartments in Delhi-NCR are characterised by premium amenities, including landscaped gardens, top-tier security systems, concierge services, and opulent finishes. Luxury apartments in Delhi-NCR are priced at a premium, typically ranging from `5 crore to `20 crore The Delhi-NCR, Mumbai, and Hyderabad markets accounted for around 84% of luxury housing sales Ultra-luxury Taking exclusivity, a notch higher, ultra-luxury apartments boast high-end designer interiors, private elevators, panoramic city views, and amenities tailored to the whims of the affluent. Prices for ultra-luxury apartments in Delhi-NCR soar beyond the `20-crore mark. These residences boast bespoke features, personalised services, and panoramic city views Sales grew nearly sixfold Premium Premium apartments strike a balance between luxury and affordability. These residences offer modern amenities, well-designed living spaces, and convenient urban living at relatively more accessible price points, typically range from `1 crore to `5 crore in Delhi-NCR Luxury homes in Mumbai priced above `10 crore saw India’s millennials, who make up 36% of half of 2024. Worli area alone represented more than a third of these transactions Frank sales totaling `12,300 crore in the first on an annual basis in Pune the population, accounted for 54% of homebuyers in 2023, according to Knight According to the Magicbricks Prop Index Report (April-June 2024) 7% 6.8% 6.5% 5.9% 4.5% Noida Gurugram Mumbai quarter-on-quarter (QoQ) increase Greater Noida Delhi Hyderabad and Bengaluru are seeing the highest annual appreciation for two-bedroom homes, at 15% and 13.5%, respectively, while Mumbai saw a 10.3% increase. Delhi-NCR saw an average 12% rise in property values, followed by Pune at 11%, according to a report by NoBroker ● Smart lock and keyless entries ● Motion sensors, timers, and automated lights turned on when they’re needed and off when they’re not ● Smart ● Voice thermostats to adjust temperatures, and smart appliances assistance through Google Home and Amazon Alexa ● Indirect lighting ● Walk-in closets ● Separate dry and wet kitchens ● Stone countertops ● Steam rooms ● Fire pits ● Electric car ● Heated washrooms ● Rooftop decks ● Screening rooms ● Soaking tubs ● Outdoor kitchens ● Golf simulators charging stations