Holiday houses are a significant bet for real estate players.
Several property developers in India are already entering the vacation house market in response to the growing demand for second homes in coastal or hilly locations, as rich individuals increasingly want to own second homes in these locations.
In 2021, India’s residential sector had a resurgence, with house sales and new launches both increased significantly since the third quarter of the year. The strong trend in luxury vacation houses and second-home investments is projected to continue throughout the year. While the third wave of COVID may slow the recovery of the real estate market, luxury vacation houses will remain untouched because they have always been in high demand among the wealthy. Due to the public health issue, however, a significant shift in perspective occurred, and property purchasers began to hunt for second homes as well as their primary residences.
Not just people’s aspirations, but also the government’s efforts to stabilize the housing market are important factors in pushing real estate purchases, especially holiday houses. The Monetary Policy Committee (MPC) of the RBI, for example, agreed to hold the repo rate at 4% while keeping the reverse repo rate at 3.35 percent. This accommodating attitude will aid luxury real estate growth in the future years. This year is likely to provide a much-needed boost to the industry, and all states may assist speed up the recovery process by proposing new homebuyer incentives or implementing stamp duty waivers.
Work-from-home or hybrid model strategies have also boosted demand for vacation properties. This is good news for luxury real estate projects that want to take advantage of the trend by gradually stabilizing and developing the luxury real estate market.
Pandemic has had a significant impact on how we work, it has also had a significant impact on how we live our lives as a whole, including how we have modified our lifestyles to be more healthy. Due to the epidemic and the uncertainty it has brought, people are more willing to purchase larger homes. This, together with reduced bank lending rates, has helped to maintain demand for second houses consistent during this tough time. Following the COVID period, people desire to live, exercise, and enjoy life in new ways. As a result of these determining factors, purchasers are seeking homes that are larger and more spacious, as well as residences with green environs as additional criteria. Additionally, recreational areas and daycare facilities have been included in the list of top amenities.
Based on favorable mood drivers, India’s vacation homes market is positioned for substantial development in the new year. Furthermore, given the current economic climate and market attitudes, demand for luxury vacation houses or second homes will continue to grow in the future years. In most cases, the second investment or vacation house is the holiday home, and buying a luxury holiday home in Goa will become a popular choice among purchasers in the future.
The Ministry of Housing and Urban Affairs has estimated the Indian restate market to be around $200 billion (MoHUA). The government also forecasts the sector to develop at an exponential rate in the future years, reaching a $1-trillion market by 2030, with the luxury segment playing a critical role as a growth engine.