Lahore: Recent research conducted by Lamudi, Pakistan’s best online property portal, indicates that 62 percent of millennial property hunters are interested in buying instead of renting. This should be a wake-up call for anyone involved in the nation’s real estate sector. Millennials are well-informed and are equipped with tools that make investing in property very easy for them. As a result, many are no longer satisfied with simply renting.
Traditionally, the 18-35 age group is more interested in renting rather than buying due to a variety of factors, including lack of financial independence, job prospects and, most importantly, information. Millennials, those born between 1980 and 1997, are breaking with this tradition. Their familiarity with technology and their access to information via the Internet and mobile apps are driving their interest in buying, almost to the same degree as older age groups.
Saad Arshed, Lamudi Pakistan’s Country Director, responded to the data when questioned about the continuing importance of millennials in the real estate sector.
“The increasing power and importance of the millennial generation is not just a momentary trend. It is a sign of the times, and it is also a sign of what is to come. Technology and the Internet make up a large portion of the real estate sector’s future in Pakistan. Although most of our customers still come to us via desktop computers, more and more are reaching us through mobile apps. The fact that millennials prefer buying over renting stands to change the entire industry.”
The break with tradition is also partly due to Pakistan’s stellar economic growth, especially in the tech and real estate sectors. Millennials are becoming financially independent more quickly and are able to think about investing earlier than preceding generations.
However, the percentage of Lamudi Pakistan’s property hunters aged over 35 who prefer to buy instead of rent is 78 percent. From this point of view, older generations seem to understand the value of investing in real estate more than their younger counterparts do.
Still, taking into consideration that millennials make up more than 65 percent of the site’s traffic, it is clear that this age group is a force to be reckoned with.
Arshed concluded that, “Although there are many exceptions, millennials are the age group most comfortable with mobile technology, and it makes sense that their influence is growing. Their preference for buying is a data point that no technology or real estate find should ignore.”