Generational Shift: Millennials and Gen Z in Real Estate

What are the younger generations looking for?

Smaller, sustainable and fully digitally connected apartments. They are looking for spaces that go beyond simple functionality — they want homes that reflect their lifestyle: central locations, smart technology, energy efficiency, and environments that promote coexistence and a sense of community.

Is it just a matter of preference?

No. It is structural. Millennials and Gen Z are redefining demand globally. They privilege mobility over car ownership, flexibility over permanence, and ESG values over traditional housing models. These choices are not passing trends—they represent a profound, long-term cultural shift.

What does this mean for the market?

It means transformation. The growth of co-living, multifunctional housing solutions and energy-efficient properties demonstrates the need for developers and investors to adapt. Cities like Lisbon are already registering a significant increase in demand for hybrid spaces that combine work, leisure and social life in one place.

In addition, these generations value buildings with environmental certifications, modern infrastructures for remote work, and accessibility to public transport or micro-mobility — factors that directly shape new urban projects.

And for investors?

The key word is adaptation. Anticipating these needs allows portfolios to be aligned with future demand, ensuring stable occupancy, liquidity and yields. Investors who understand this generational transformation will be better positioned to capture value, minimize risk, and lead in increasingly competitive markets.

Today, investing without considering Millennials and Gen Z is ignoring the main driver of real estate consumption of the next decade.

Did you know that...

• In Portugal, Millennials already represent more than 30% of first-time home buyers.

• Generation Z has the highest demand for rental solutions, driving the growth of the medium and long-term leasing markets.

• Globally, real estate projects aligned with ESG criteria show higher appreciation and higher tenant retention rates.

• Smart homes have faster sales and a more stable occupancy profile in urban areas.

• Hybrid models such as co-living, student living and serviced apartments are among the fastest-growing segments in Europe.

At Blast Advisors, we align investment strategies with the generational trends that are transforming the real estate market.

Want to capture the demand of tomorrow, today? Talk to us.