Holiday Homes in India are again experiencing high demand from end-users & real estate investors. There are many factors behind this demand, here we have listed some of the top reasons.
We don’t know – when will the Covid-19 pandemic end? And that’s why many corporations are ready to extend their work-from-home option. And the positive aspect here is – an opportunity for many second-home buyers to choose a holiday home where they can manage their personal & professional life without any disturbances.
We all are concerned about our occupation, family, and health. There are lots of people who prefer to rent a holiday home on a monthly, quarterly, and yearly basis. This is a supportive driven force from the investment point of view, holiday homes adequately away from the big metros are a very safe investment with good capital appreciation. These holiday homes or second homes whatever you call are very much in demand, let’s find out why through the given below points.
A perfect mixture of luxury & best quality of life
HNIs or high net-worth individuals are investing in numerous luxury residential properties as holiday homes to expand their asset exposure. It is not just a real estate investment or a postal address but a lifestyle decision for these individuals as they just want to live in a home that has a perfect mixture of luxury & best quality life in a locality that offers a significant scope of development and is also perfect for planning holiday homes.
Most of the locations preferred by these HNIs are just a few hours away from the big metropolitans like Kasauli in Himachal Pradesh, Ooty in Maharashtra, Nainital in Uttarakhand, Goa, Kodaikanal, and Mahabaleshwar, etc. And these locations are also the number one choice for the top real estate developers in India for holiday homes, some of the best holiday homes’ communities are Tata Myst Kasauli & DLF Samavana Kasauli and Tata Rio De Goa etc.
A desire for spacious homes and safety
For the last 2 years, almost everyone was confined to their homes while fulfilling their professional life responsibilities. In this condition, people (high net-worth individuals) who are capable to buy a second home/holiday home are looking for the same with extra space to set up their workstations or create separate home offices. These individuals are looking for holiday homes from reputed real estate developers because their properties are equipped with modern technology and the best services.
Some of the best features for these working professionals are: -
- Separate office space or common space to use as an office, organize a meeting or other official work
- Concierge Services
- Internet Connection
- Club House
- Gym
- Swimming Pool
High-Rental Income + Luxury of holiday home
As we know, 2020-21 has taught us one thing and that is – life is unpredictable and that we need to very adjustable and positive to survive and grow. Due to the international travel ban, domestic travel will continue to be the biggest growth driver in the holiday home rental market. So, having your own holiday home in one of the most desirable holiday destinations or tourist places will give you the best rental income and you can use this home whenever you want, Afterall it is yours.
Some of the figures & facts of holiday homes rental market
- Revenue in the Holiday Homes Rentals segment is estimated to reach $1,213m in 2022.
- Revenue is expected to show an annual growth rate (CAGR 2022-2026) of 6.86%, giving rise to an estimated market volume of $1,582m by the end of 2026.
- In the Holiday Homes Rentals segment, the number of users is expected to amount to 55.6m users by the end of 2026.
- User penetration will be 3% in 2022 and is expected to reach 4% by 2026.
- The average revenue per is expected to reach $30.59.
- In the Holiday Homes Rentals segment, 48% of total revenue will be made through online booking by 2026.
- If we compare globally, most revenue will be generated in the US with a figure of $17,660m in 2022.
Favorable Market Condition
Now every homebuyer is enjoying the perk of affordable home loan interest rates and this has encouraged them to consider a second home. The affordable home loan interest rate is the biggest saving while generating an asset for personal use or a real estate investment. Now holiday home seekers can opt for the more luxurious option with the best luxury amenities and services, with a choice to increase the loan amount. Incentive packages and relaxation in stamp duty too have made this time unquestionably perfect for end-users to invest in luxury holiday homes.
The return of NRI Investors
Another captivating trend has seen in the last few months is that the NRIs have begun investing in luxury homes especially in holiday homes in hilly areas. It is getting observed that a large amount of the Gulf, UK, US, and Australia-based ex-pat Indians have invested in holiday homes.
Increasing the worth of Dollars & AED against Rupees and offers getting provided by developers are some of the luring factors for these NRIs. These NRIs want spacious and luxurious homes in India because of the standard of living they delight in the countries they are staying in.
