Real estate market: how the change in the consumer profile affects your investments

consumer profile

The real estate market has always been one of the safest options for investments in Brazil. Despite the high prices, acquiring a property means greater tranquility for those who think of having an extra income throughout their lives. Currently, the consumer profile has changed in all areas due to the new generations, who have habits and needs totally different from the older consumers.

The so-called generation of millennials, which experts attribute to those born between the 90s and 80s, is characterized by individuals who have consumption habits that develop a lot on the internet. In other words, they not only shop online, but also look for tips and references on how to live well.

Furthermore, these new consumers are also concerned with new issues, such as sustainability, for example. In practice, this means that anyone who decides to invest in the real estate market, in order to make money on rents, needs to understand these new consumption perspectives in order to make good deals.

What to consider when investing in real estate?

In general, investing in the purchase of houses and apartments to make rental income is a safe option, which will not offer great possibilities for future risks in terms of losing money. However, to really benefit from this condition, the investor needs to consider some points in order to make a correct purchase that will only yield good results.

To begin, know that you do not need to have the full value of the property to buy it, on the contrary, it is perfectly possible to use incentives such as financing. That is, it is an alternative both for those who have a considerable amount to invest and also for those who have not yet managed to add a good amount.

Even for those who have less money, the tip is to try to buy real estate in the plant, which usually have a more affordable value. When investing in real estate, you have the option of reselling, as well as creating an income from rentals – which may be the most interesting option if we consider it in the long run.

However, for all of this to work, the investor must always be attentive to the demands of the market. Another point that cannot be overlooked is the location of the property, which must be in a prosperous region, with prospects for economic development and with good infrastructure, otherwise, getting tenants will be a great challenge.

What changes to consider in the real estate market?

If in the past, getting married and buying a property meant guaranteeing a peaceful family future, the reality of consumers who have emerged in recent years is quite different. Today, young people dedicate more time to their studies, search for new experiences, such as international exchanges, and leave the love life, often, in the background.

With that, that need to start working and then buy a property for the stability of the family is no longer so important. After all, the trend shows that the generation of millennials has increasingly postponed their marriages and even the planning of children. On the other hand, these young people are concerned with ecological problems, the use of electronic devices that facilitate everyday life and also new life experiences.

For millennials, buying a property while they are still young means that they will have an account to be paid for a short time, which can compromise dreams that they consider most important, such as an exchange to learn a new language, for example. However, why is it important to understand this new consumer pattern in the real estate market?

The answer to that question is quite simple: it is these current young people who will make up the majority of the tenant market in the years to come. If your idea is to acquire a property now to rent it, certainly, your next tenants will be part of that generation.

Predictions Regarding Lahore Smart City

What does the generation of millennials bring to the market?

For the older generations, the important thing was to save money early to buy a property as soon as possible to live with the newly formed family. These people did not care much about factors such as the location of the property, what was around in terms of convenience or architectural details.

Of course, if the property that was within the budget met these needs, the acquisition would be a much better deal. However, none of these points were really decisive when closing a deal, as the important thing was to guarantee the stability that came with the acquisition of the long-dreamed “home”.

However, for new consumers, the following considerations must be considered:

  • they leave their parents’ homes later, compared to previous generations;
  • they are more likely to rent a property than to buy;
  • they prefer new properties, as they are concerned with details such as comfort and convenience;
  • Mobility is an important factor, so the location of the property is one of the most important requirements for millennials.

This new generation is a real challenge for the construction companies, since they live with the family for much longer, even after graduating and finding jobs. Still, they prefer to rent than to acquire a property. Therefore, this is the opportunity that investors have to improve their income.

Millennials are also known for their immediacy, that is, when renting an apartment they do not want to waste time on renovations. Therefore, investing in the purchase of a new property is the best alternative. Furthermore, they also value the chance to go to work by bicycle or subway, for example.

How to win over these new consumers?

To conquer this new audience that will dominate the consumer market in the coming years, the first tip is to understand what is important to them. In addition to what has already been mentioned, also think about more technical details such as the size of the property. Today, families are smaller and furniture and appliances are developed to adapt to new small environments.

In other words, the most interesting thing is to invest in the purchase of smaller properties, which have been shown to be more appropriate for new consumers. When thinking about making a decoration, think that today’s trends are not the same as in the past. So, no spending money on renovations to leave an apartment in a classic style – which is not what millennials are looking for.

It is details like these that investors need to be concerned about. Considering these consumer profile tips, rest assured that you will be on the right track to meet the expectations of modern times.

Take the opportunity to also check out the post we already made about a property purchase contract!

How to Be a Real Estate Agent

About the Author

You may also like these