Influence of the Millennial Market on the Real Estate Industry

by PRIME Philippines Research and Advisory  May 19, 2017

In previous years, we have seen the rise of trends and products because of generations. These trends follow certain generations and the needs the generation have. The rise of the toy industry came from the baby boomer generation’s demand for toys because of the number of babies during the time. Eventually, even fast food places put up play areas for the millennials in their earlier years, because of the sheer numbers of the next wave of babies. Generations tend to affect industries, and the industries that maximize the generations by using trends really profit. A current trend is seen to currently affect the retail sector of the Real Estate Industry.

In the time of millennials and social media, there is now a need for “Instagram-able”  features in retail establishments, especially in the food and beverage industry. “Instagram-able” is a coined term based on Instagram, the photo sharing app.  Photo sharing in Instagram has a wide range, but one specific category of photos for sharing are photos of food and food places. Posting photos of where one eats and what one eats is a trend on Instagram. In this light, marketing through social media is now one of the essentials for upcoming restaurant/ food stall businesses to be known. Unknown or hidden restaurants are frequented because of their social media presence.

One of the main beneficiaries of the rise of social media marketing is the food park trend. 2016 saw the rise of food parks, trending in social media with the various decorations and food presentations from their tenants. Food parks offer a wide variety of food and beverage choices from unknown brands. The effect food parks take on is that of an outdoor food court with tenants following a certain theme or mix. The innovative presentations and offerings of food parks gained traction in the social media network and food parks were marketed as an “experience”, urging the market to see, taste, and experience food parks for themselves. As more and more people got to experience food parks, their presence in social media also grew, and the term food park is now a generally known term.

Aside from the retail sector, the residential sector has also been targeting millennials for the past years. The office sector has seen numerous companies inquiring for industrial warehouses to be converted to office spaces to provide a more innovative, creative environment for its workforce. Knowing that current and future trends are millennial driven, the question is: “What will the next trend be?”

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