MILLENNIALS MISSING HOME

SKY-HIGH PROPERTY PRICES, COUPLED WITH SLOW INCOME GROWTH, HAVE MADE THE DREAM OF OWNING A HOME A DISTANT ONE FOR MANY MILLENNIALS. THIS COULD LEAD TO STAGNATION IN SOCIAL MOBILITY  AND POTENTIALLY DEEPEN EXISTING SOCIAL INEQUALITIES 

- NAVNEET DUBEY

IN THE POST-PANDEMIC world, 34-year-old Shikhar Srivastava, like many others, relocated back to NCR after working remotely for three years in his hometown, Kanpur. While he rented a flat in Greater Noida, he envisioned buying a property there. After purchasing a flat in Kanpur during the Covid-19 real estate market downturn, he was surprised to find buying a home in NCR was completely out of reach. A 2BHK costing ₹40–50 lakh a year ago was now selling for ₹70–80 lakh, and 3BHK flats now cost more than ₹1 crore in NCR, making it difficult for the millennial to buy a home near his workplace.

This price surge is not restricted to NCR. Across major cities, real estate prices have climbed after the pandemic, making home ownership increasingly challenging for the layperson. This problem is particularly acute in urban areas, where rapid urbanisation and rising migration have significantly increased property values post Covid-19.

While some working millennials (a person born between 1981 and 1996) were able to secure flats at attractive prices in NCR during the pandemic, others, like Srivastava, explored opportunities in Tier II and Tier III cities. However, securing home loans for these properties has proven challenging due to market price variations. Presently, they regret their decision as they find themselves compelled to return to metropolitan areas for employment and seek rented accommodation.

With a whopping 440 million, India boasts the world’s largest millennial population. This translates to roughly 34% of the total population, with a median age of around 28. These young adults are flocking to major cities, driving demand for both residential and commercial spaces.