The demand in the second home market in India is booming due to the post-pandemic and lifestyle changes. Young buyers in their mid-30s to 40s are now investing in holiday properties. This market, once limited to high-income individuals, now includes entrepreneurs, professionals, and senior executives.
The work-from-home culture has made holiday homes more appealing. The second home market was worth $1.394 billion in 2021. It is expected to reach $4 billion in the next 2 years.
More Indians look for peaceful retreats from city life. Now, owning a vacation home has become a status symbol and a realistic goal for many, marking a major shift in the real estate market.
9 Reasons for the Second Home Market Shift
New lifestyle trend
People are rethinking their lifestyle choices, seeking more than just a routine existence. A second home offers the perfect escape for relaxation and nature appreciation. Awareness of mental health and the need for a tranquil space has grown, and so are the number of premium plots. It offers people a lot of flexibility.
Remote work arrangements
Next, the major driver is the work-from-home setup, as people prefer peaceful locations over noisy cities. After the March 2020 economic dip, the real estate market rebounded swiftly.
The interest rates in the second home market decreased. Eventually, by October 2020, 25% of Indians worked from home, with 44% able to work remotely. This focus on mental peace spurred interest in holiday homes in areas with riversides like Manafuli Ganga Villas and mountains.
Millennials in lead
Discussing about hybrid frameworks further brings the leading age group buyers into context. Millennials used to lag in home investment, but the current scenario has changed dramatically. A recent study shows millennials are the largest group of home buyers for the fourth consecutive year, making up 40% of buyers. They are increasingly investing in second home market for reasons like –
- Permanent telework
- Flexibility to change their primary residence
- Enjoy vacations without uprooting their lives
This trend highlights the growing millennial influence in the real estate market.
Co-owning vacation home property
Fractional ownership in the second home market has gained popularity. The price can start with a minimum of Rs 10 lakhs, even lesser if you are just interested in investing in holiday home plots. Manafuli Ganga Villas is one example.
According to a study, about 64% of high-income citizens favour fractional ownership of holiday homes over other real estate investments. It provides an accessible entry point into the lucrative second home market, catering to diverse preferences and financial capabilities.
Pocket-friendly
The concept of co-ownership automatically drags affordability and convenience. A 3BHK abode in the city peripherals costs less than a cramped city apartment, prompting people to seek refuge from bustling urban life. Even if one is interested in premium plots, overall it is an amazing investment for a really long time.
Reduced stamp duty rates have further incentivized property purchases, making the second home market a compelling investment opportunity.
Extra income potential
Amidst economic uncertainty, there’s a growing interest in vacation homes and holiday home plots. It’s for their potential to generate passive income through rentals and investments, respectively. This makes investing in the second home market a significant financial decision.
Nearly 75% of Indians choose real estate for long-term investments. Second homes are particularly attractive due to their potential for a continuous source of income and value appreciation.
Also, if one just targets premium plots for vacation homes, then it is a jackpot. You know that the price of land never depreciates.
Travel and tourism
Exposure to international holiday homes has heightened interest in the second home market. India’s booming tourism, with 2.08 billion domestic visits in 2019 (13.8% annual growth from 2011 to 2019) has boosted this trend. People now see holiday homes as ideal for vacations or retirement. Popular tourist spots, such as in 2-tier cities, are seeing increased demand for these properties.
NRI investments
NRIs have significantly boosted the demand for holiday homes in India by actively investing in the real estate sector. In 2020, NRIs alone injected around $13.1 billion into the second home market. They are attracted to the higher rental income offered by these properties, especially if they are in the suburbs. Ganga Villas, just 27 kms from Joka, offers premium plots that hold the right potential.
Ideal retirement heavens
Last but not least, the second home market in India is increasingly chosen as retirement homes. Retirees seek peaceful environments away from city chaos, finding solace in popular vacation spots like Ganga Villas in Burul. Building villas in the premium plots here offers a peaceful lifestyle with natural beauty and modern amenities.
Additionally, the cost of living is lower. With India’s tourism sector booming, the locations of holiday homes promise better infrastructure and healthcare.
Hence, many retirees invest in second home market, blending tranquil retreats with convenience for a comfortable and enjoyable retirement.
Parting Words
The growing demand in the second home market is expected to drive prices up in the near future, prompting buyers to act swiftly. India offers many stunning locations ideal for a second home. Owning a house in a hill station or by the beach can provide passive income.
West Bengal has pretty good opportunities. Why not invest in holiday home plots just by the Ganga river? Book a visit with Manafuli. It has breathtaking views with beautification all around. Your land will stay with you forever never depreciating its value.
Plus, real estate prices in India are expected to keep rising. Over time, your second home could become a valuable asset.