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Tuesday January 25th, 2022

CBH Lands Market Intelligence: Understanding investors a cross demo graphics and their real estate needs

Manjarie Tissera Wijemanne, Founder Deputy Chairperson at CBH Lands

 

CBH Lands Market Intelligence sheds light on how investors from all demographics approach real estate investing, what they are looking for and the factors that drive them and influence their decisions.

Each demographic has unique needs and expectations in real estate. CBH Lands Market Intelligence deep dived into the world of Gen Zs, those born after 1995, Gen Ys born between 1981-1995, Gen Xs born in 1961-1980, the baby boomers born in 1945-1960, and pre-1945 born maturists to understand what makes them tick. These are their findings.

WHAT THEY ARE LOOKING FOR IN REAL ESTATE?

GEN Z: They have a clear idea about the space they want and an equally clear vision about what they want to do with it. Location matters to them. They are looking for a home away from home, preferably closer to nature.

GEN Y: Investing in real estate is somewhat daunting. They are often unsure where to start and are shy to ask questions. Investing in real estate seems complicated to them. If they cannot afford a house in a preferred location, they prefer to invest in more affordable areas but worry about protecting their investments. They tend to be very busy, so Gen Ys look for one-stop options and solutions to their real estate investment needs.

GEN X: They are comfortable investing in real estate for the long term. They are focused on planning for their children’s education and retirement, so Gen Xs are interested in maximising returns from their property holdings by generating rental or lease incomes. They are not averse to investing in bare land, houses, or apartments as long as their needs are satisfied.

BABY BOOMERS: Like Gen Xs, baby boomers are comfortable with real estate and have a knack for maximising returns from the property they hold but do not occupy themselves. They will invest in real estate they can easily access, so distance matters. They prefer investing in bare land and commercial buildings.

MATURISTS:

They have an unshaken belief in real estate as a means to build and accumulate wealth for their kids and grandchildren. Location or distance does not matter to them as long as there are opportunities to maximise returns and keep investments safe. They prefer investing in bare land because they want to build.

HOW HAS COVID-19 IMPACTED THEIR LIVES AND INFLUENCED THEIR APPROACH TO INVESTMENT?

GEN Z: The new normal of working from home has made their jobs less stressful and easier going. They are picky about vacationing and spend a lot of time on entertainment to keep their sanity in the face of the lockdowns and movement restrictions. Their investment decisions are influenced by living life to the fullest in a post-pandemic world.

GEN Y: Many experienced dramatic changes in their jobs, incomes, and lifestyles. Several plans like starting a family, taking on a new job, or travelling overseas got shelved due to the pandemic. They approach investment intending to secure their futures and realise their life goals.

GEN X: This demographic was probably the most hurt by Covid-19. They experienced deep pay cuts and job losses more than any other demographic. They had to deal with the stresses of falling incomes, dwindling savings and kids stuck at home with no clear direction about their future. They are cautious about investing and are concerned about protecting their investments and generating healthy returns.

BABY BOOMERS: They worried about getting vaccinated and struggled with adapting to buying essentials online. They spent their time worrying about family and friends kept apart by the lockdowns and movement restrictions, and are deeply concerned about their wellbeing. Baby boomers look for investment opportunities that generate healthy returns while accumulating wealth for their kids and grandchildren.

MATURISTS: Wrecked by constant worry over their health, ability to visit a doctor or purchase medicines, they are most concerned about safe investments

POST-COVID, HOW DO INVESTORS VIEW REAL ESTATE?

GEN Z: They have convinced themselves that real estate is a viable asset class worth investing in after actively investing in other income-generating options, including cryptocurrencies and other business collaborations. Most Gen Zs tend to invest in property with friends and are unafraid to research and make up their minds.

GEN Y: Space matters to them. Spending the lockdowns confined in small apartments proved difficult for many of them. Now, they are keen to explore real estate opportunities, especially after falling interest rates brought lustre to the property segment. They are well researched and know what they want, and proactively explore every avenue of purchasing real estate, including custom financing terms.

GEN X: Many in this demographic are interested in rebalancing their investment portfolios to account for real estate opportunities. More than price or payment options, Gen Xs tend to focus on aspects of the legal transfer of property deeds.

BABY BOOMERS: With returns from fixed income assets, primarily bank fixed deposits, declining, they look for real estate opportunities with some urgency to claw back dwindling returns on other investments. They tend to look for options that will give them quick ownership of real estate titles.

MATURISTS: They are more interested in investing in a home and garden. Convenience, health, and safety are factors influencing their real estate investment decisions. They tend to view real estate as a resilient investment asset that could withstand any aberrations in the financial system.

AFTER INVESTING IN  PROPERTY, WHAT WILL THEY DO WITH ANY SAVINGS? 

GEN Z: They want to continue investing, but Gen Zs will also spend freely on lifestyle pursuits and passions. Their choices tend to be influenced by sustainability and social and environmental concerns.

GEN Y: They defer spending on leisure and entertainment, and care deeply about generating reliable returns. They are well researched and are looking to strike a healthy balance between high-risk short term yields and long term value.

GEN X: They are hunting for investments that can generate quick returns for their kids’ education and home improvements. They are even considering spending on holidaying, overseas travel and upgrading their mode of transport.

BABY BOOMERS: They are keen to spend on leisure and foreign trips but plan on investing 80% of their savings on asset classes that can give them some cover from rising inflation. Wealth accumulation matters to them, so they are also looking for opportunities in private equity.

MATURISTS: They yearn to spend more time with family and friends and lead content lives, so they will spend on these pursuits after securing their investments.

CBH Lands provides bespoke investment services in real estate and property across the country, especially within the Kurunegala District of the Wayamba Province of Sri Lanka. The land selection process is very rigorous, and once purchased, the planning, preparation and development are completed by its sister company Ceylon Brand Developers (Pvt) Limited. On completion of a project, CBH Lands undertakes the process of sales and marketing of the property. Unlike other real estate companies, CBH Lands controls the entire process, from the selection to purchasing, investment, planning, development, marketing, and sales, thereby enabling CBH Lands to perfect its approach to offering highly personalized services and solutions to its customers.