NEW DELHI (INDIA):Owning a second home had been traditionally preferred by elite as it was considered a status symbol. The concept of owning a second home has evolved out of city life becoming more chaotic and property developers coming up with holiday home projects in the vicinity of cities and rise in people with higher disposable incomes.
“The second home market has evolved wherein apart from consideration of having a holiday getaway, today buyers are looking at earning steady income and decent returns. Majority of these buyers continue to be from upper- income segment and include NRIs, retired government officials and high net-worth individuals having large disposable incomes,” says Deep Kantawala, head, ICS Real Estate Partners and CFO, ICS Group.
Such projects have sprang up in destinations like Shimla, Kasauli and Dehradun due to consolidated efforts of developers as a result of which they are able to secure having road connectivity, access to numerous amenities from local authorities.
The real estate market for second homes has undergone transformation and these homes are now available at affordable prices. It is an ideal time for users and investors to consider such projects as they offer decent annuity income and good return in the medium and long –run. Rajeeb Dash, head, communication marketing, Tata Housing Development Company Ltd. says that market has revived post demonetization and this segment offers immense potential especially for brands.
Amit Goel, CEO, India Sotheby’s International Realty agrees that there has been an upswing in trend of buying homes away from crowded and polluted cities. “These peaceful places have new concept homes, luxury villas and apartments which are attracting buyers,” he adds. He also informs that “prices are comparatively lower in these locations to similar developments in metro cities.”
Anubhav Jain, Director, Group Silverglades, which has premium residential projects called Silverglades Hill Homes in Kasauli, agrees with the view. “Even the market is low-spirited but still it is the most favourable time to buy a second home as prices are at all time low and it is the perfect time to lock in a good deal,” he says.
P.N.Mishra, CMD Parth Infrabuild Pvt. Ltd., a real estate developer in Lucknow, says: “Home prices in these locations, mostly Tier 2/3 cities, is affordably priced and leisurely located thereby making it a worthy investment. As home prices in metro cities get dearer, second or vacation home is high on preference of buyers.”
Realty sector is expected to make a comeback with the passage of recent legislation that will herald transparency. The market has gained stability with an estimated 10-15% price correction. “We now expect a trend of market growth in the third and fourth quarter of the financial year. Thus, this can be an ideal time for those aspiring to buy a second home, with excellent options available in good projects,” says Mr. Harinder Dhillon, VP,Sales ,DLF.
Manav Singh, Chairman, Imperial Realty and Developments, informs that Himachalis now can freehold homes in the state which wasn’t possible earlier. Abhishek Bansal, Executive Director, Pacific India Group points out that recent legislations and price corrections will lead to a drop in interest rates.
Ashwinder Raj Singh, CEO, JLL Residential Services, says that second home market is attractive from the long-term perspective for buyers provided they sort out their investment plans and put their finances in order.