Investment in second homes, is driven by a segment of buyers, who seek profits out of real estate investments or hold it for prestige. While Indians have invested in second homes for quite some time, people are now shifting their focus to something that offers more personal value, like a holiday home, which allows them to enjoy the additional benefit of a weekend holiday at an owned place. Moreover, such properties also offer the option of renting it out and earning income from the tourism potential of the investment destination. Homestays during holidays, has become a lucrative market, today.
Ashwinder Raj Singh, CEO – residential services, JLL India, says that Indians who buy holiday homes, tend to have higher disposable incomes and hail from the middle and top management segments. “This buyer segment is usually in the age bracket of 35-45 years. These buyers purchase such homes, either for investment purposes or as weekend getaways. Among many, the demand criteria for second home locations in India, is that they must be within a few hours’ drive from the parent cities,” Singh explains.
Abhishek Kukreja, vice-president, Cedar Villas in Mashobra, near Shimla, maintains that “Holiday homes are ideal retreats, for blissful time outs with family, in today’s 24×7 working lifestyle. The factors that one should consider, while investing in holiday homes, are the sanctity of the place, in terms of its environment and ease of accessibility.”
See also: Dos and don’ts for buying a second home
Where are holiday home buyers investing?
According to Singh, Delhi’s citizens prefer to invest close to their homes. “In Delhi-NCR, the most favoured second home format is the farmhouse. Farmhouse developments are located in clusters around Mehrauli, Bijwasan, Rajokri and Chattarpur and come in various sizes and configurations. These properties are available in the price range of Rs 2.5 crores to Rs 12 crores,” adds Singh.
“For Mumbai residents, some of the preferred destinations are Lonavala, Alibaug, Karjat and Goa. Lonavala is by far the favourite with Mumbai residents and there is a good supply pipeline of row-houses and bungalows, from leading players such as Tata, Lodha, Piramal and Kalpataru. There is also a healthy demand for plots, in Lonavala. The prices for row-houses range from Rs 1 crore to Rs 2.5 crores, while for bungalows it is from Rs 1.5 crores to Rs 4.5 crores and for plots it is from Rs 25 lakhs to Rs 1 crore. Alibaug is also a preferred destination for Mumbaikars, who prefer coastal areas, while Karjat, offers affordability and serenity as its primary USPs,” Singh elaborates.
In the south, Puducherry is a preferred destination for Chennai residents and it has many second home options available, from local and national developers, adds Singh. “Yercaud’s peaceful and scenic environs, has emerged as a magnet for Chennai’s second home seekers who are looking for something different. Despite competition from many other hotspots, Mysore has stood the test of time, as one of Bengaluru citizens’ favourite second home destinations,” says Singh.
Changing preferences, vis-à-vis holiday homes
However, not everyone can find a perfect option close to one’s home. Price tags and the lifestyle quotient, also play important roles, when searching for a second home. Buying an affordable home close to the workspace or a busy marketplace, may also not be possible, when it comes to locations for holiday homes in cities like Mumbai or Bengaluru, for example. Consequently, while the mindset towards owning a second home is slowly changing, people are looking for innovative ideas that provide affordability, return on investments and also allow one to enjoy holidays at their own homes, in between.