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The millennials era in the real estate industry

It is estimated that more than eight million people in Spain belong to the "millenials" generation. This generation is about to become a true economic engine, thanks to its gradual entry into the professional world.

What is the "millenials" generation? To put it in a nutshell, we can say that these are the people who belong to "Generation X" (born from 1962 to 1979) and "Generation Z" (born from 1992). The millenials would be all those born between 1980 and 1992.

Buying your first home

he millennials were born at the height of economic prosperity and digital revolution. Their input into the job market has been greatly affected by a period of economic crisis, which we are not sure if we have come out of it yet.

This social group is characterised by the difficulty they face in coming up with funds for buying a property. Men and women between the ages of 24 and 36 (the millenials) face the urge to live independently and get a place of their own.

What decision do they make? According to different studies, 17% of this generation chooses to buy their first home while 81% opt for renting a property.

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Photo: IStockPhoto / Getty

The rental option

Renting is a solution for those who want to gain independence from their family as it's a less risky option. It is about being able to enjoy your time in solitude or with your partner, without the burden of a mortgage.

In Spain, the idea of owning a property is still new and renting is always seen as a good but temporary option. In a large number of cases, renting is giving way to long-term investments.

How much money do these young millenials spend on the rent? These are very variable amounts, depending on the chosen place, the location, the city, etc. To give you an approximate idea, we would place these figures between 400 and 1,000 euros per month.

The location

The members of the millenials generation are looking for a good location. They are concerned about transport and require a good range of services, not only in terms of shopping and leisure, but also administrative, health, etc.

That is why these young people are looking for centrally located and if possible, fully renovated properties with good amenities. At least this would be the first stage.

In a second phase it is evident that the urban centre of many cities will not easily meet expectations. This will happen as the millennials need extra space, for example, to start a family.

As a consequence this second phase, there will be many of these young people who will undertake a new property search, this time around the outskirts of these cities.

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