“Vacationing gets better when it is at home” said a wise man. But then there’s the milkman, washerman, newspaperwala etc. bothering you incessantly at home. Besides, the hectic city lifestyle asks for a home nestled in quaint surroundings. The modern needs to rejuvenate because of the demanding schedule that most of us have, has got the second home property market buzzing. More so in recent times, from an investment perspective, the destinations for second homes have yielded better returns. Most of these locations are at a comfortable 100 – 250 kms of distance from any metro city or a tier 2 city.
With marked slowdown in property markets in bigger cities, these havens of natural beauty have offered sweeter returns as the demand for these is driven by disposable/surplus income which is inherently recession proof.
Top second home destinations
Most of the second home destinations either have cooler climates because of being in the mountains or are on the coastal line with numerous beaches dotting the location. These locations are situated on the periphery of a large metro city. For e.g. : Mumbai and Pune have various holiday home destinations like Lonavala, Karjat, Mahabaleshwar, Alibaug, Matheran etc. In the north around Delhi are Shimla, Kasauli, Nainital and various other hill stations in the entire Uttrakhand and Himachal Pradesh. Chennai/ Bangalore have an option from clutch of destinations like Ooty, Kodaikanal , Coorg, Pondicherry, Yercaud and the entire scenic Kerala. Around Kolkata, places like Darjeeling, Asansol, Rajarhat have attracted attention. There are various other untapped locations with picturesque views around each of these cities. One could explore these locations depending on the budget and availability.
The Consumers and Growth Prospects
Whichever the location may be, the second abode is aspirational, for the upwardly mobile and people with higher disposable income. This also includes NRIs who intend to have a connection to their roots. In the recent times, the demand of second homes has seen a marked uptick owing to the rising number of HNIs riding on the back of growing economy. According to an estimate, the number of HNIs has increased at a CAGR of 22% in the last five years. This has predictably translated into a higher demand for holiday homes making it an attractive investment option for parking extra income.
Selecting a property
The destinations are selected keeping convenience in mind as the focus of second homes is leisure/ holidaying. Several developers have projects which offer an array of facilities in gated communities. If you are looking for a standalone house then the first step is to select a plot of land. For eg: you need to know the right price for a plots in Lonavala or a plots in Karjat. Various brokers and online agencies help in locating and selecting plots in such places. It is advisable to use trusted contractors to build a house on that plot. Several professional agencies offer services to build a house in a promised time-cost framework. It is ideal to freeze on a house construction cost before finalizing a deal with the contractor. With the advancement in construction technologies, many new raw materials like, AAC blocks or prefabricated houses/ modular homes ensure faster delivery of efficient green homes. It is essential to understand the time one would need to invest to see their dream of a holiday home materializing. A detailed planning and discussion with the contractor/developer can go a long way in finding peace in your holiday home.