News: Large real estate developers enter holiday home mode-17-04-2022
Large real estate developers are entering into the holiday home market as the pandemic has prompted well-to-do people to hunt for a second home in the hills or beach destinations, according to property advisers.
While , the country's largest real estate developer, is planning residential developments in Goa and Kochi for 2022, several other developers are eyeing sites in Himachal Pradesh and Uttarakhand.
"Developers have leveraged the demand for holiday homes in such cities by coming up with innovative offerings with world-class amenities. Organised players who have had an enviable track record have an advantage over others due to their extensive experience and understanding of the laws that govern real estate in such markets," said Aakash Ohri, group executive director and chief business officer, DLF Home Developers .
Homebuyers have been investing in high-value holiday homes set in the lap of nature for the past two years, as they seek social distancing, safety, and comfort all in one space. Hill stations have always been preferred holiday destinations, especially for quick getaways from the metros.
"While Dehradun, Kasauli, and Shimla have always been popular for quick getaways from Delhi NCR, cities close to these hills have also gotten a major boost, for example, New Chandigarh, Panchkula. Strategic location within a few hours' drive from metro cities, great views of the Shivaliks, a pleasant climate, and calmness are the hallmarks of these cities," Ohri said.
Nearly 70% of people who took a Savills poll said that they want to buy a second home for less than ₹2 crore, and 57-70% want to buy a second home in the next two years.
"The second home market appears to be on a gradual upswing. Unlike earlier, when capital appreciation and rental income were the governing criteria, an additional dimension of a safe home away from pandemic hotspots appears to have become a key consideration," said Shveta Jain, MD, Residential Services, Savills India. As per the survey, Goa leads the domestic demand for second homes, with one-fifth of respondents interested in buying a second home in the popular beach destination. Realty developer Tata also has a project in Kasauli, while another listed developer, Eldeco, plans to enter the holiday home segment soon.
We will enter the segment with projects in Kasauli, Rishikesh and Goa. We will do a joint venture and develop high end villas. With our presence in tier 2 cities, we get a lot of demand from our existing customer base," said Pankaj Bajaj, chairman and MD, Eldeco Group.
Uttarakhand leads the domestic demand for second homes in the northern part of the country, while Himachal Pradesh has witnessed limited demand for second homes.
"Holiday homes are the talk of the town today. Lockdowns have made everybody realise the importance of peaceful rejuvenation. People want a place to re-energise themselves regularly to be ready for their hectic routines," said Prateek Mittal, ED of Chandigarh based Sushma Group.
