'People want a second home with all the luxuries'
February 11, 2012Om Ahuja
MD, Residential Services, Jones Lang LaSalle India
The demand for holiday homes is as wired into India's overall economic performance as any other segment of residential real estate. That said, it is also remarkably enduring; this has a lot to do with the Indian belief that two homes are better than one, and that the second one should provide what the first can't.
In India, there are insurmountable limitations on space. This impacts home sizes in the most aspired-for first home locations-those close to the busines districts and workplace hubs. Prices on such properties are steep and the lifestyle quotient low in most cases, especially in Mumbai, Delhi and Bangalore.
This means that in the final choice of first homes by most Indian property buyers, comfort and natural ambience are invariably sacrificed in favour of a shorter commute. By the same coin, it is axiomatic that these limitations must be dispensed with when it comes to second home locations and configurations. Those who buy vacation homes tend to make their purchases in close-by hill stations or other accessible locations with convivial surroundings.
Indians who buy holiday homes tend to have higher disposable incomes, hailing from the middle and top management segments. This buyer segment is usually in the age bracket of 35-45. These buyers purchase such homes either for investment purposes or as weekend getaways. Among many demand criteria for second home locations in India is that they must be within a few hours' of motorable distance from the parent cities.
Residents of the financial capital have flocked to Lonavala, Alibaug, Karjat and Goa for years. These locations have a good supply pipeline of both row-houses and bungalows from highly-reputed developers.
The National Capital Region has a unique farm house culture and temperament which has not found many parallels elsewhere in the country. These developments are located in clusters around Mehrauli, Bijwasan, Rajokri and Chattarpur.
Chennai has its own second home hotspots in coastal Pondicherry and Yercaud, near Salem, the perfect hill station located in the Shevaroys range of hills.
For Bangaloreans, Mysore has stood the test of time. This town is most famous for its overall cleanliness. In fact it was rated the second cleanest city in India and the cleanest in Karnataka in 2010. Ootacamund (or Ooty) is also a evergreen choice with second home buyers.
Hyderabad's citizens prefer Vizag as a second home investment location. Its USPs include relatively affordable property rates, decent appreciation potential, plesasant weather and the fact that it is on the coast with many sea-facing property options available