A guide for Gen Y to buy your next home

There is a new phenomenon catering to the need of the younger, smaller households that are craving for privacy and aspiring to build a residential asset – the unit sizes are getting smaller, and newer configuration such as studios and 1 bed apartments are becoming popular in the Indian metro cities.

To put things into perspective, by the year 2020, India is likely to be the youngest nation in the world (with a median age of 28 years). With 2/3 of its population in the economically active age group and most of them living in urban areas. This demographic change will fuel economic growth resulting in an increase in disposable income and consumption among other things impacting real estate demand and the emergence of new product types.

Today, 25-34 years is the prime first home buying age in India as against 40 years a decade ago due to increase in income and ease of financing. The population in the same age group is known as ‘Generation Y-Know’. They are tech savvy, culturally diverse and high-income urban dwellers, working in new technology jobs and open to new concepts and ideas. To them home ownership is one of the key goals as they recognize the financial prudence of buying over renting. As they consider independence is the most coveted commodity of modern urban living.

One of the main reasons behind the emergence of the compact homes such as studios and 1BHK units is that it meets the ‘Generation Y-Know’ dual aim of saving and investment. They save on rent; the additional investment yields an annualized return on investment in the range of 11%-13.5%. The sale value, after principle repayment gives the buyer an investible surplus to be used as down payment for his/her subsequent property purchase to accommodate a larger family in future. Therefore, buying a compact home is a sound investment option for an individual in the age group of 25-30. In case of investors, they benefit from a rental yield of 3.5%-5% per annum.

These types of homes cater to the increasing migrant population working in the IT/ITeS sector in Bengaluru, and located close to technology/ economic hubs such as Whitefield, Sarjapur Road, North Bengaluru and Hosur Road.

Today,the market for studios and 1 bhk apartments is in a nascent stage but it has the potential to capture at least 25% of the annual addressable market by 2020. Awareness about the product offerings, its financial benefits, favourable demography and economic conditions are likely to create a sustainable market for such homes over the next 15-20years.

Here’s a similar product in the Assetz portfolio, called Here& Now:

Two elegantly designed towers; highly functional studio, 1 and 2-bedroom apartments; located in the immediate vicinity of the Manyata Tech Park, AssetzHere & Now lies nestled in the growth corridor between the outer ring road and the airport. All requirements from daily necessities, schools, hospitals and malls are available within a close range.

The highlight of the design is the functionality of the space. Every square inch of the apartment is properly utilized to ensure maximum usage to the inhabitants.The arrival to Assetz Here & Now on the ground floor at the central foyer is generous with extra high ceilings, large seamless spaces,a club house and a barrier free movement between in- and outside.The apartments themselves have high quality vitrified tiles, PVC windows, international standard doors – paired with highest quality workmanship to give our customers the satisfaction of having the best.Technology is a platform which builds the foundation of our everyday. At Assetz Here & Now we have embraced this and are providing FTTH within the project and Wifi connectivity within the premises.

Our 15 plus amenities are at par with the best, among them a fully equipped gymnasium, a swimming pool with a deck, a jogging track, an amphitheatre, indoor games, reading nooks and much more.