India’s second & holiday homes, once believed to be trophy assets for the selected few, are now increasingly becoming mainstream. The market is presently sized north of USD 2.1 billion and is growing at a commendable rate of 23.6%, as per the research by Axon Developers.
Across the length and breadth of the country, from the snow-capped Himalayas to the spellbinding valleys of Sahyadri, from the picturesque coastal towns of Konkan to the tranquil tea gardens of North East, demand for second homes and related products is growing at an unprecedented pace.
Also Read: How to build wealth through real estate investmentThe trends of investing in second-home properties will continue to rise and evolve in 2024, with a bullish supply line and demand curve. Mentioned below are some of the key trends that we are going to see next year in 2024.
Combine nature & adventure: There will be a sharp rise in demand for places and properties, wherein we can combine, nature and adventure. From simple nature walks among rural trails and sightseeing to more advanced adventure sports such as trekking, rock climbing, mountain climbing, boating, etc. will surely take a shot in the arm. During staycations, while normal business will happen on weekdays, weekends will be reserved for adrenaline pumping. New properties will come that will have inbuilt facilities for adventure games such as zorbing, rock climbing, paintballs, etc.
Demand for wellness will rise: The overall demand for wellness, rejuvenation, and immersive tour packages will rise sharply. Across secluded sea beaches and foothills of Himalayan ranges, we will see new farmhouse projects, wellness centers, eco-resorts, yoga & reiki studios, farm stays, etc. Similarly, investments will grow in traditional and modern massage therapies, medical tour packages, naturopathy hotels, spiritual retreats, etc.
Sleepy towns in Urban peripheries will pick up: Sleepy towns and rural backyards located in city peripheries or at approachable distances from the major metros will see a steady growth in demand. Locations across the Delhi-Mumbai expressway will attract demand for farmhouses, second homes, etc., especially from the NCR buyers. Likewise, a string of hill stations such as Panchagani, Lavasa, Lonavla, Panvel, Karjat, etc. which are located at an approachable distance from Pune & Mumbai (1 to 3 hours), will see a spurt in holiday home projects. Their apt location alongside rich natural endowments comprising pristine lakes, hills, green trails, and vantage points make them a perfect recipe for weekend gateways. Staying in such places means enjoying nature without staying far away from the city’s contours. In silicon Valley, Nandi Hills will consolidate its position.
Long leases are here to stay: Not everyone will invest in properties. Many will still prefer long leases, as it will enable them to stay in pristine and tranquil locations without investing much. The growing culture of remote working, the gig economy, and startups will boost the trend. Many professionals will realize sometimes it is wise to shun a 9—5 office routine and stay in nature and work. This can improve productivity, aid in critical thinking, and revitalize the mind and body. As the demand for long leases will continue to thrive, so will the rental yields. This will further lure the investor fraternity towards second homes.Already there are popular markets such as Sindhudurg (7.2%), Nandi Hills (6.6%), and Rishikesh-Narendra Nagar stretch (6.7%) in the ~ 6% and above category. Going forward other destinations such as Panjim, Lavasa, Mussorie, Chamba, Coorg, etc. can cross the 6% rental yield mark.Supply Lines will Evolve: In 2024, the supply lines of second homes will continue to transform and evolve. Big developers are entering the space which is giving a monumental shift to the segment. Gone are the days when a second home meant a farmhouse-style home with a bonfire, swimming pool, and some elementary games. New communities of second homes will be built with top-tier facilities such as valet parking, concierge, remote access, 24-hour cafes, wellness spa, etc. This will further draw the attention of NRIs, tech entrepreneurs, top corporate honchos, art wizards, etc.
(By Ankit Kansal, MD, Axon Developers. Views are personal)