Budding vacation home destinations in India
When it comes to how the real estate market has evolved in the previous year, many themes spring to mind: individuals are wanting to buy larger houses, home offices are being included in the plans, and workcations are the new status quo. Another growing trend is individuals buying vacation properties.
Whereas the notion of a second house is not new, these residences are increasingly being bought in India’s smaller towns with the intention of remaining and working there for extended periods of time. Is it, however, only the work-from-home (WFH) scenario that has spurred buyers? Another motivator, according to many, is the return on investment. “In the aftermath of the epidemic, house loan interest rates have dropped to an all-time low.” “People who purchase a new house now can enjoy significant capital appreciation on their long-term investment, and rental income from investment properties could also be a solid addition to one’s yearly revenue. According to a recent survey, reveals that 82 percent of people plan to make a purchase in 2022.
growing markets
It’s no wonder, that not only are the country’s hill stations in great demand but so are Tier II and Tier III cities. Rich individuals across Tier 1 cities like Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, and Pune are driving demand for secondary residences. “Apartments and villas are in high demand in Tier I cities.” “When the location switches to destinations like Goa, Alibaug, and Haridwar, independent residences are popular alternatives.
In terms of typical pricing, prominent middle-class-favored places near large cities range from 3,000 and 12,000 per square foot. According to Kumar of Anarock, agreements for the ultra-rich seeking grandeur in excellent holiday areas have been concluded for more than 200 crores in select locales, especially prominently in Goa and Amby Valley.
Buyers have been drawn to Tata Realty’s properties in Kasauli, Lonavala, and Goa. According to Sarthak Seth, Chief Marketing Officer of Tata Realty & Infrastructure Ltd, with the pandemic causing travel restrictions, there is a strong drive for secure residences distant from metropolitan areas. “As a result, the majority of interest for these properties is originating from metro areas such as Delhi, Mumbai, and Bengaluru.”
Manav Singh, the founder of Auramah Valley, a luxury residential township project in Shimla, believes there is desire for regions such as Dharamshala, Shimla, and Manali. He claims that a home in the hills is three to four times cheaper than one in the city, and that a holiday home seems more of a need than a desire. “We’ve received interest from experts earning more than 1 crore, businesses earning more than 3-4 crore, retired persons with discretionary incomes, and so on.”
According to reports, investors and developers are increasingly focusing on Tier II and Tier III cities. “Owing to reverse migration, places like Amritsar, Chandigarh, and Shimla, among others, are on the horizon of larger builders.”
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