Residents of Mumbai and Pune far outnumber those from other cities, when it comes to the desire to own a holiday home. A Track2Realty survey found that more than two-thirds of Mumbaikars would like to have a holiday home, followed by Pune where more than half the respondents wished to own holiday homes.
The top 10 cities where people have a penchant for holiday homes are:
- Mumbai – 66%
- Pune – 58%
- Chandigarh – 52%
- Delhi-NCR – 48%
- Bangalore – 42%
- Chennai – 34%
- Hyderabad – 32%
- Coimbatore – 28%
- Indore – 22%
- Kolkata – 18%
These are the findings of a pan-India survey by Track2Realty, a real estate think-tank group. The survey was aimed at finding the investment patterns of Indians into the property market, once they have reached the goal of having a house for self-use. The survey tried to find out whether the Indians would like to invest in a lifestyle driven property segment like the holiday home. Close to three out of four (72 per cent) have appreciation potential and returns on investment (ROI) in mind, when looking for a holiday home. Only 28 per cent had actual holidays in mind, when thinking about buying a holiday home.
Places that are in demand, for second homes
Traditional destinations are more in demand, as the Indians are still not ready to experiment with upcoming or lesser-known holiday destinations. The desire to have a secure investment, was echoed by 78 per cent of the respondents. Consequently, in Mumbai and Pune, places like Lonavala, Khandala, Baneshwar and Alibagh, are preferred destinations.
In the northern India the preference is for places like Mussoorie, Shimla, Nainital and Dehradun. In the eastern part of the county, the place of choice is Darjeeling. In south India the preferred places for holiday homes are Ooty, Coorg, Kochi, Alappuzha, Yelahanka, Kodaikanal and Kannur.
What type of second home locations do Indians prefer?
In terms of the type of location, the preference is skewed towards hill stations. As many as 62 per cent would love to invest in places with picturesque views of snow-capped mountains or lush green hillocks, while 34 per cent of second home buyers are inclined towards beaches and the remaining four per cent have other choices, including historical places.
Maria Fernandes, a 38-year-old IT professional in Mumbai, invested in a second home in Goa, although she would have preferred a hill station, instead. “We have beaches in Mumbai as well, even though they are not like those in Goa. I really wanted to have a holiday home in a hill station. Had the distance not been a factor, I would have preferred Shimla or Nainital instead, to get away from the hustle and bustle of city life. The best part is that these places are economical, when I compare it with the cost of property in Mumbai,” says Fernandes.
Among the beach lovers, Goa scores above other locations, with as many as 74 per cent of such home seekers preferring to invest in a second home in Goa. This demand is not just from those in the western parts of the country, as even north Indians seem to have an affinity to Goa. Vivek Sharma, a self-employed CA from Gurugram, bought a villa in Goa. “One week in Goa is more relaxing than a month in other locations that may be at a short drive of four to five hours. So, I took a conscious decision to have a second home in a place of my choice that offers real peace of mind. Failing this, the very idea of a holiday home would not have any meaning,” Sharma explains.
The buyer segment for second homes
The survey also revealed that the buyer segment for second homes, is not restricted to only wealthy Indians. The survey found that 60 per cent of the second home buyers belonged to the salaried class and only 40 per cent were from the business class or self-employed professionals. Moreover, the demand for second homes, is more for villas in distant locations, rather than apartments. No less than 78 per cent said that they would not mind paying a bit more, for a property that offers leisure and is free of frequent interruptions from strangers on the same floor.
The market for second homes in India
- 66 per cent in Mumbai would like to have a holiday home, followed by 58 per cent in Pune, 52 per cent in Chandigarh and 48 per cent in Delhi-NCR.
- 72 per cent have appreciation potential and ROI in mind, when looking for a holiday home.
- Only 28 per cent have actual holidays in mind, when opting for a holiday home.
- 78 per cent wish to have secure investments, in established locations.
- 62 per cent prefer to invest in places that offer picturesque views of mountains or lush green hillocks.
- 34 per cent of the second home buyers are inclined towards locations that have beaches.
- Among the beach lovers, 74 per cent prefer to invest in Goa.
- 60 per cent of the second home buyers are from the salaried class and only 40 per cent are from the business class or self-employed professionals.
- 78 per cent would not mind paying extra for a villa that offers leisure, uninterrupted by strangers on the same floor.
(The writer is CEO, Track2Realty)