Indians who buy holiday homes tend to have higher disposable incomes, hailing from the middle and top management segments. This buyer segment is usually in the age bracket of 35-45. These buyers purchase such homes either for investment purposes or as weekend getaways.
“The market for such properties is still emerging in India. It will pick up, but not on the scale seen in the West. Buyers of holiday homes in the West tend to spend their entire summers or winters at their vacation homes and buy them accordingly, in terms of scale and numbers. The concept is an emerging one, but the motives and scales are very different. Those who buy vacation homes tend to make their purchases in close-by hill stations or other accessible locations with convivial surroundings,” says Karun Varma, Managing Director, Bangalore and Kochi, Jones Lang LaSalle India.
In the case of Mumbai and Pune, the locations of choice are Lonavala, Khandala, Baneshwar, Alibaugh and Goa. Bangalore holiday home buyers usually prefer places like Coorg, Ooty, Chikmagalur, Mysore and Mangalore. Towards the north, the places of choice would include Darjeeling and non-restricted areas around Dehradun, Mussoorie and Nainital. Depending on the type of home being opted for (flat, farmhouse, bungalow or villa) and its size, such a residence can vary from Rs 30 lakh to Rs 2 crore.
Rental, timeshare schemes
Holiday homes today are being aggressively marketed by real estate developers at holiday spots and city outskirts.
“Many such projects even come attached with outdoor or sporting activities such as golfing, water sports and community farming.
“Because such properties lie vacant for the most part of the year, developers often propose to turn them into income opportunities for owners through rental or timeshare schemes as well.
Holiday homes have also been offering end-users, looking for short breaks from city life, recreational and leisure opportunities for quick weekend getaways. To tap this growing opportunity, the country’s top builders have been entering into new land deals on the outskirts of metropolises like Mumbai, Bangalore and Kolkata,” opines Shveta Jain - Director, Transaction Services - Residential, Cushman & Wakefield - India.
Projects
Disha Direct, the pioneers of the second homes trend, believe it has to be at a location that today’s discerning buyers spend less time travelling to and epitomise tranquility. Santosh Naik, MD, Disha Direct Marketing Services Pvt. Ltd, explains that far away from the bustling city of Mumbai, on the Ahmedabad Highway is where their new holiday home project Reso’Villa is located.
Charming hills, lush green forests, lakes and ponds, a river, developed infrastructure and peaceful surroundings collectively make Reso’Villa a perfect setting for a great holiday home.
The cottages with sloping roofs and glazing reflects greenery into the interiors. Designed with an artistic approach, the outer profile of this house is very bright and full of life as it is within. Modern architecture with contemporary material adds to the innovation, excluding sharp and heavy elements keeping the design simple yet classic.
Greenfield Shelters, part of the Greenfield Group based in Salem have recently launched their new project Wild Orchid. Located on the gently sloping Shevaroyan Hills, at walking distance from the scenic Yercaud Lake, Wild Orchid is a sprawling 55-acre gated community with more than 80% of open area. Each estate is a quarter acre each, on which you can build your dream villa.
A peaceful, serene environment coupled together with eco-friendly site planning, guarantee to make Wild Orchid the perfect destination to build your holiday home. Being a gated community with a completely fenced compound wall, there is round-the-clock security to guard the premises.
Roads, power and water are at the doorstep of the estate. Villas will be constructed using environmentally friendly materials and design.
The project offers gated plots of 10,000 sq ft. each, where villas with a built-up area of roughly 2500 sq. ft. can be constructed. The rest, by contract, will be open space, to keep with their ‘Rejuvnature’ motto. There are 150 plots set in two phases.
With most of phase I already sold, phase II is underway, along with an international tennis court, a leisure club and a golf course. The estate is being designed by Michael little, an American landscape architect based out of Bangalore.
Investment decisions
Holiday homes also make an interesting investment opportunity providing capital gains and rental income.
Additionally, the demand for vacation homes these days has been further stimulated with several banks and financial institutions providing loans for such projects. However, it is important to note that pricing is very specific to the holiday home location, and it is difficult to generalise on price ranges. While buying a holiday home, one should ensure that the property exists in an area that is not overly secluded, and that there is sufficient security in place.
“Because it will be known in the locality that the owners visit only rarely, there is a high probability of it drawing attention in a negative way, or attracting crime. Invest in a location and project that allow for sufficient resale value should maintenance of the property prove untenable, or if fast liquidity is required.
Do a due diligence on the property’s antecedents and ensure that all necessary permissions and clearances are available.
Also, because the property would be in an unfamiliar area, check local property rates or have it valued professionally if in doubt about the builder’s asking price,” advises Varma.