OTHERWISE KNOWN AS GENERATION Y, MILLENNIALS ARE APPROACHING EVERYTHING DIFFERENTLY. AND WHETHER IT’S ABOUT THEIR VALUES, THEIR SEAMLESS RELIANCE ON TECHNOLOGY OR THE WAY THEY EXPLORE PROPERTY, THEY ARE NOT THEIR PARENTS
They are Generation Y, young adults born between 1980 and 2000, who are changing the way the world functions and how markets operate. They are doing it through their spending habits, techno-savvy approach and a global view that is significantly more questioning than that of the generations who preceded them.
The millennials are prolific technology users, generally considered the most connected generation for their embrace of technology and social media across their lives. This includes their approach to purchasing property – millennials now constitute the bulk of the world’s first-time homeowners.
It is Barely 36 hours since she landed in Kenya, and Olivia is on her way to Kitengela – one of the most beautiful places to own property in Nairobi’s Metropolis. She is accompanied by her three ‘girlfriends’, he best friends on this side of the planet. Her mission: To buy a parcel of land that she intends to purchase for herself. Never mind that Olivia just recently marked her 25th birthday.
Her mind-set though, is racing many years ahead of her. She wants to invest for her future, and also probably for the future of her expected family. And Olivia is not alone. There are a whole lot of young, educated and well-heeled young men and women who are literally storming into the investment space, the real estate investing in particular.
They are called the Millennials. The term Millennials is usually considered to apply to individuals who were born after 1980 and reach adulthood with the turn into the 21ST century. Why are these Millennials taking into real estate with such gusto? Here are seven reasons why:
- Dominant Demographic: Kenya’s demography is slanted towards the millennial. Out of Kenya’s current 48 million people, the youth form a solid 35%.
- Educated Generation:This generation is quickly becoming highly educated. There are a lot of Millennial in Kenya who have gone past their undergraduates and they have the right mind-set and exposure on how wisely invest. The real estate is an attractive vehicle for this age bracket.
- The Youthful Family Portfolio Manager:Millennials are progressively proficient at pressing the essential buttons governing both their individual and their families’ wealth. They have been bolstered by their budding investment acumen and augmented professional experience.According to study – Coming of Age – done by OppenheimerFunds and Campden Research, a division of Campden Wealth, While Ultra High Net Worth Millennials enjoy a growing influence in managing their families’ wealth, the study found thus:74% Millennials are both educated and impeccably knowledgeable about their families’ portfolio and are beginning to take more measured risks with their individual investment strategies.
- Disposable income: A huge number of millennial just got themselves some good job where they are being remunerated handsomely. There are now many high and ultra-high net worth millennial amongst us. The wise ones are taking their money to the right places, and the real estate is one of those right places.
- Positive Peer Pressure: Many of these millennial are still at the age where they can be easily influenced by their colleagues. If something seems trendy on the other side of the fence, it should also be replicated on my side of the fence.
- Breeding Nests: The millennial are at the threshold of starting families. They are quickly thinking of where they can weave their breeding nests.
- Millennial have learnt from the best: Most of these young people have seen their parents and leading lights in Kenya take to real estate. They have watched the real estate sector in Kenya become one of the most attractive investment vehicle.