Currently, millennials and generation Z (Gen Z) have become a significant part of the social and economic aspects of a nation and are a driving force in ensuring a prosperous future for the subsequent generations. Deemed challengers, change-makers, boundary pushers and influencers, these young generations have been changing the trends and setting higher standards of living and working culture. Being born into an evolving technological era, millennials and Gen Z have a largely positive view of how digital innovations are affecting their lives.
The new generations are constantly setting new trends in every sector and the real estate sector is no exception. People in their 20s, 30s and early 40s, are at the peak of their ‘house buying years’, particularly due to consistent sources of income and easy access to home finance. This youthful community is now pushing the boundaries of the traditional housing market, with more socially and environmentally conscious priorities and expectations. For instance, when millennials and Gen Z buy a product or service, they look for innovation and prefer to spend money on the latest idea.
Being one of the most tech-savvy generations, millennial and Gen Z home buyers now prefer the comfort and convenience of technological innovations, and they are even willing to invest more money to enjoy smart features. If we look into the preferences of new-generation home buyers in Dubai, we can see an increasing demand for smart and sustainable features. With the increased exposure of the new generation to environmental issues such as climate change, the demographic has become more eco-conscious to the extent of changing their buying behaviour in favour of sustainable living. In light of this, millennial and Gen Z home buyers prefer properties that are energy-efficient and equipped with the latest technologies. These changes have significantly transformed the world of construction, as the demand for smart and green buildings is rising in Dubai, as well as across the globe.
As millennials and Gen Z continue to change every concept of living, the idea of home has evolved from being just a shelter to a place that reflects the personality, tastes, and interests of the residents. The community is now looking for places that are different from traditional homes. They want properties that incorporate their unique outlook and perspective, where they can work, play or rest with utmost comfort. With the increased focus on quality of life, many new-generation buyers are now looking for properties that are close to work and social amenities, such as entertainment venues and restaurants. This has led to an increase in demand for properties in lively urban areas of the city.
The outbreak of the COVID-19 pandemic was a major turning point in the housing market, as it emphasised the value of living in a healthy environment. The lockdowns and overall concern about health pushed millennials to purchase residential units instead of renting. The work-from-home (WFH) culture that the pandemic brought about further accelerated this trend.
Apart from this, the influence of the new generation has also transformed the home-buying process significantly. As the market players look to give millennial and Gen Z customers a favourable consumer experience, they have been accelerating efforts to embrace digitalisation in various stages of the home-buying process. The preference for technology has changed the way people buy homes, mortgages and even the job of realtors. Earlier, the major role of realtors included providing significant information about the property, but now with the integration of digital technologies, buyers can obtain all relevant information online with a single click of a button. Now, the value of an efficient realtor relies on negotiation skills, relationship building and their ability in simplifying the home buying process, as new-age customers prefer hassle-free transactions. In the current market conditions, capabilities like virtual tours, digital appraisal scheduling, virtual inspections, remote notary services, and digital closings have all advanced significantly.
The changes brought by millennials and Gen Z house-buyers are steering the real estate procedures in an entirely new way that can have positive implications across the economy in the future. With consistent income, increased quality of living, and a research-driven culture, the new generation is transforming the entire home-buying process globally.