The exhibition pays attention to the generational shift in property investment
With more and more Millennials investing in real estate, the Generation Y are poised to reshape the real estate industry worldwide. Having recognized the potential of the largest demographic group- the millennials who are plush with rising incomes causing a surge in consumer spending, Luxury living is now experiencing a demand from the new millennials that has led The International Real Estate and Investment Show 2017 to reshape its structure to accommodate this group.
With the apparent rise of millennials spending on the housing sector, leading developers such as Aldar, Danube, Azizi, Damac and many more are strategizing accordingly to such demands. These developers are coming up with schemes of housing rent as little as AED2,500/month. In addition, some of the developers such as Danube are offering low monthly premium as little as one percent on monthly EMI.
The Abu Dhabi municipality recently launched a new initiative to cater to the low-income families and bachelors. This scheme intends to provide high-quality accommodations at a low price. The rents are expected to range from AED917-AED1,563 per month. This scheme is mainly for rent payers as opposed to the property buyers.
Antoine Georges, Managing Director of Dome Exhibitions, the official organisers of IREIS 2017 stated, “Unlike previous generations, Millennials have been born and raised in a time of technological innovation that has led to the exchange of information with an ease and volume that was virtually unimaginable just two decades ago. This technological advance has perhaps accelerated their learning potential thus coming to realize early on- real estate is one of the best long-term investments.”
He added, “Millennial homeowners have proven to be research-driven, analytical and technologically savvy and will find The International Real Estate and Investment Show their one-stop destination for limitless opportunities, all under one roof”.
As per the 2017 study conducted by the American National Association of Realtors (NAR study), members of Gen Y (those younger than the age 36) were the largest group of home buyers at a record 34% for the fourth year straight. With 86% of millennials believing that owning is more affordable than renting, the comfort seeking new generation for whom luxury is the new normal, has introduced a new-found demand for high-end properties.
Studies indicate that first-home buyers play a crucial role in the real estate and investment market because they bring in fresh demand and allow homeowners to buy more expensive real estate, stimulating a demand for new construction. Fuelling the importance of the Gen Y, is Zillow’s findings that millennials make up 56% of first-time homebuyers with the average first-time buyer being only 32 years old.
With a taste for modern, energy efficient properties, millennials flock towards upscale suburbs as opposed to the urban core of cities. “Millennials are fiscally conservative and is probably why they opt for a conservative investment like buying a home. They are drawn to this seeming stability in the value of residential real estate,” commented Georges.
Ranging from both residential to commercial properties, the youth are turning out to be the primary investors in real estate.
“At the International Real Estate and Investment Show, millennials will not only be exposed to foreign opportunities, visa-free travel and dual citizenship, but will also be assisted with analysing and comparing overseas opportunities, complex decision-making, documentation and application processes,” concluded Georges.
The International Real Estate and Investment Show 2017 will take place in the Abu Dhabi National Exhibition Centre (ADNEC) from 2-4 November. Entry to the show is free.
For more information, please visit www.realestateshow.ae