The ever-evolving real estate industry trends are influenced by a multitude of factors, such as economic conditions, government policies, technological advancements, and other social and cultural elements. Amongst these factors, demographic shifts play a profound role in shaping new trends across the sector. Understanding the composition and characteristics of a population – such as age, income, family structure and cultural background – can help developers to stay updated on housing preferences, demand and property values.

Ravi Menon

Real estate being one of the most dynamic industries, developers are driven to adapt innovative strategies to stay ahead of the curve. Furthermore, the prime influence has led real estate developers to consider the preferences of millennials, who are the largest generational cohort in the current times. With their distinguished choices and novel concepts, millennials have proven to be instrumental in redesigning several conventional real estate approaches.

Millennials are deemed to be tech-savvy, seek convenience and connectivity, prefer access to amenities and urban-centric living options over traditional, suburban living. However, the increasing environmental consciousness among the generation is increasing the demand for green building practices, energy-efficient designs and renewable energy sources in residential and commercial properties. The recent rise in mixed-use developments, co-living spaces and urban revitalisation projects signify the influence of millennials in the industry. In order to retain their position in the market, developers are focusing on catering to their demands by adapting to these trends, further focusing on creating sustainable communities with vibrant social spaces and proximity to workplaces.

Another demographic element that drives these trends in the real estate sector is the ageing population. With better healthcare facilities and living standards, the population of senior citizens continues to grow, and this brings increased demand for housing units equipped with convenient amenities that cater to their needs. Developers are following current trends and are delivering senior housing, a friendly community for aged people, healthcare facilities and accommodations that incorporate technologies that benefit this group. Active adult communities and senior living facilities are being built to address the growing demand for housing solutions that offer them a sense of community living. Identifying this trend, real estate developers and investors have amped up their investments in housing projects, presenting a significant opportunity in the real estate market.

Ravi Menon, Co-Chairman, Sobha Realty, said: “Demographic shifts have a big impact on real estate trends, and also have an impact on how we build, buy and invest in real estate. To be competitive in the market, developers are now adapting to the needs of various populations. For instance, millennials prefer urban living with flexible and sustainable spaces that fulfil creative mixed-use complexes and co-living alternatives. The senior housing demand, which is fuelled by an ageing population, creates investment opportunities in this industry. Additionally, the rising concerns on urbanisation and affordability drives developers to construct sustainable, affordable housing solutions and remote working influences, owing to the surge in flexible workspaces and integrated live-work properties. Real estate stakeholders will only be able to succeed in this dynamic market and satisfy the evolving requirements by comprehending and adjusting to these demographic variations.”

The influence of demographic shift in real estate is complex and has multiple implications. With different demographic cohorts entering the market, developers and investors have to alter their strategies and tailor their offerings to meet the evolving demands and stay updated with the trends. In order to thrive in an evolving property market, it is crucial to understand these intricate implications, cater to the requirements and capitalise on opportunities.