In the recent past, there has been an increasing demand for second homes in India, making it a full-fledged market segment. The demand is generated on the backdrop of a rise in the High Net worth Individuals (HNI) in India, which is presently registering an annual growth rate of over 20%- one of the highest across the globe.
The rise in the HNI populace is simultaneously stimulating the demand for second homes. Presently it is estimated that the market size of second homes is increasing at 10-12% annually. Generally located in hill stations and other holiday destinations, such homes offer great opportunity to hang out with friends and family and get relief from the busy urban life. Likewise, such homes are also purchased with the intention of spending time during post retirement days.
Increasingly individuals are also understanding the investment potential associated with such properties, but since large percentage of demand emanates out of the lifestyle choices of the Indian HNI, investment objectives are yet to become a significant element in driving the demand dynamics of such properties in India
Role of Developers
The rise in demand for the second homes are making developers increasingly focus on the segment. As second homes are premium offerings, builders are not keeping any stone unturned in satiating the higher taste of the buyers. High emphasis is given on every aspect of design and quality encompassing of theme, interiors and fit-outs etc. Likewise such homes come with a range of top quality amenities such as swimming pools, meditation centers, squash courts and gymnasiums etc.
International design concepts such as Mediterranean and English are frequently being incorporated to feed the lifestyle urges of the Indian HNI. Likewise developers are also focusing on giving a sweeping view from the home that can add to the experiences of the buyer. Many times, the objective is to give such places a resort like feel and help it differentiate from other dwelling units commonly seen in the modern day urban life.
Major Second Home Destinations
Traditionally places such as Goa, Shimla and Kerala are among the most sought after second home destinations. Goa draws its strength from being an international tourist destination with exotic beaches and natural indulgences. Shimla offers round the season opportunities to relax and enjoy. During summer and warmer months there are ample trekking and other adventure sport options whereas when the mercury level goes down, the hill station has many ice-skating spots.
Kerala attracts on account of its natural indulgences. Having a second home at Kerala offers ample opportunities to visit the nearby forests, coffee gardens and other natural beauties such as Back Waters.
Regional dynamics are also playing instrumental role in emergence of numerous new second home destinations. Places such as Lonavala and Alibaug are attracting attention of buyers from Mumbai and Pune. Similarly, places such as Nainital and Mussoorie are focal point of investment coming from Delhi NCR and Punjab. Likewise religious places such as Mathura, Vrindavan, Dharamshala and Haridwar are also gradually becoming popular as second home destination.
Checkpoints
For buyers it is advisable to purchase second homes from reputable developers that can ensure high standards. Also since locations are farther from city life, it is essential that consumer should look into key factors such as electricity, water and sewage before zeroing down to a specific location. An absence of such basic facility can negate the key objective of second homes- relaxation and peace.
Similarly developer should look into status of the land and conceptualize their plan accordingly. For instance, if the land has been categorized as agriculture land then the built up area will be limited and hence accordingly used.
On the contrary if its a normal land, developers are allowed to execute large developments. However, it should be noted that large scale of development can eventually mitigate the calm and serene ambience, which are often USP of such second home projects. Hence a meticulous planning is required.
