Vacation homes in demand2 December 2011
The trend is seen in cities as people want to spend some quality time with family in a serene environment away from metro city.
Investing in a home away from home is gaining ground among Indians with higher disposable income. The trend according to industry experts has been growing for quite some time, which is mostly seen in cities as people want to spend some quality time with family in a serene environment away from pollution and noise of metro city.
Mr. Santosh Naik, MD of Disha Direct who literally coined this phrase 'second home' eight years ago said there is an estimated demand for two lakhs unit around the country for a second home and homes range from Rs.10 lakhs to Rs.70 lakhs.
His company has so far put up 8,000 units with an investment of Rs.400 crore. He said earlier it was only the rich that had second homes in hill stations but today with economic growth, everyone wants to own a bunglow. "Apart from such a home providing quality time to the owner it is also a good investment option with land appreciating so fast", he said.
Another builder Mr. Ashok Chhajar, Chirman and managing director, Arihant Superstructures said, "On an average, 20 percent of the buyers of our projects at Thane, Navi Mumbai, Badlapur, Kharghar and Panvel are second home buyers." adding that in Jodhpur such second home buyers accounts for almost 30-35 percent of its total sales.
"People living in smaller cities can buy a land parcel too if they want to invest in property but there is little choice left for individuals in metros like Mumbai. So buying a second home looks an attractive choice for them," said Mr. Mayur Shah, chief of sales, Hubtown. He added that the second home market has been growing at a considerable pace and Hubtown's properties in Pune and Thane have witnessed many such buyers.
Mr. Chhajer mentioned that out of the 400 units sold in this financial year in Mumbai, the second home buyers accounted for almost 100 units.
"These are largely HNIs and NRIs, who are ready to invest Rs.2,500-Rs.5,000 per square feet for a two BHK flat," Mr. Chhajer said.