Second homes, holiday homes gaining traction
With the lifestyle change due to the pandemic and low home loan rates, demand for getaways is high
The realty sector has completely transformed in the past one year. Among many changes has been the kick start given by the pandemic to the second homes market. With ‘work from home’, home quarantines and rise in demand for safety and comfort in one space, people are considering a shift of residence away from crowded cities to luxurious holiday homes. The perception of lifestyle has changed in response to the new reality, and buyers are attaching a lot more value to community, design, surrounding, greenery, amenities and services.
In the backdrop of lower home loan interest rates, reduced stamp duty and registration rates in some states, it is an appropriate time for people to consider investing in a second home. Prices will eventually get stronger, as the second home market is niche, supply of quality projects is limited and demand is very high. People should try to take advantage of the situation and invest in larger homes and even holiday homes. We have in fact already witnessed an increase in demand and sales of weekend home offerings.
Earlier, the nomad culture among working professionals always found a preference in renting rather than buying. However, the pandemic has changed the game, with people realising the importance of owning a house. Those who already own one are looking for an upgrade. Hence, there is a major demand for bigger and larger living spaces, as people have adapted to the WFH module and are eyeing extra space in the house as a work-station. This fashion in the real estate ecosystem is here to stay and developers are already planning projects catering to this need.
People also feel the need of a getaway from their everyday lives, and the pandemic has highlighted the need of owning a holiday home rather than renting one. The trend is here to stay, and there is a rising need for more space within these. Staff rooms and washrooms, home office and children’s rooms are few of the prerequisites demanded by most buyers these days.
HNIs are investing in multiple luxury housing properties to diversify their asset exposure. It is more of a lifestyle decision for wealthy individuals as they want to live in a house that announces their arrival and offers a higher lifestyle with a super-luxurious home set-up than just a postal address. A locality that offer significant scope of growth, and is also perfect for planning weekend homes, would be Lonavala, Mahableshwar, Alibaug (Mumbai, Pune) Mokila, Chevella (Hyderabad), Nandi Hills, Hosur, Anekal (Bengaluru) Pulicat, Pondicherry, Mahabalipuram (Chennai). Properties at these vicinities are more likely to appreciate.
Real estate value increases over time and surpasses other investments. Supply follows demand, and the demand is continuing to rise. Even though the market has seen ups and downs, it has never deteriorated over a long span of time. Investing in real estate allows you to safeguard yourself and your wealth. There will always be the importance of your land, and value in your home. Hence, second homes and holiday homes will gain a lot of traction in the coming future.
The author is Director at S Raheja Realty.
DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.