Thread by @ankitoberoi_

[thread] The real reason why Indian real estate is suffering: by @babablahblah_

India's youth does not want to buy a house. period

@babablahblah_ 1/ The younger generations (read millennials) don't see why they should make a 30+ year commitment to a single investment which end up rooting them to a single location.

@babablahblah_ 2/ It's hard to justify to them why they should invest money into real estate (which is highly complex and illiquid) instead of buying mutual funds or investing into SIPs (which are easy to understand, can be traded with an app and provide instant liquidity).

@babablahblah_ 3/ They would rather rent a house (which is likely to be about 30% of what they would pay as EMI to own the same house) and have a great lifestyle instead of paying EMI on the first day and live extremely frugally for the remainder of the month

@babablahblah_ 4/ The simple fact is that today's youth are more aware, more affluent and have more investment options than any time before, and the 'Get married - Buy a house' formula isn't working on them anymore.

@babablahblah_ 5/ It is important that our real estate industry acknowledge that the buyer persona has changed - Home ownership is not longer a priority for the youth. Interestingly, this presents multiple opportunities for players in real estate.

@babablahblah_ 6/ Residential rental as an industry is poised to grow. People want to commute less and 'work-from-home' is emerging as a trend. Co-Living and Co-Working as concepts are gaining mainstream traction. REITs are being formalised in India.

@babablahblah_ 7/ The future is bright for players in real estate, but only if they are willing to understand the requirements of today's buyers.

There is always a time when every company has to 'reinvent' itself. For real estate companies in India, that time is now. 🙂

#RealEstate #realestateinvesting #invest #investing