14 March 2023

Vacation homes or holiday homes have risen in popularity over the last few years. The market has evolved briskly, especially in the last 3 years. It was sized at USD 1.4 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 23.63% in the next 4 years and cross USD 4 billion by 2026, thus becoming one of the fastest-growing assets within the real estate market.

Vacation homes: A popular choice

Across the length and breadth of India, the demand for second-home properties has grown steadily, especially in the wake of the pandemic, which highlighted the need for periodic breaks to decongest from city lives and bond with nature instead. The rise in the domestic market for vacation homes is also attributed to multiple aspects: growth in domestic tourism, improved connectivity, the rise of flexible work models, transparency, and returns on investment. Vacation homes have evolved significantly from being just a lifestyle asset to an investment asset.

Tourist destinations closer to the beach and hill stations with direct air connectivity and within 4-5 hours of driving from metropolitan cities are preferred. Non-metro cities with a favourable climate, ample access to nature, and their proximity to the sea, countryside, mountains or a combination of them all, have become a preferred choice of investment for second-home buyers.

Gated communities over independent homes

Buyers have led the demand for vacation homes or gated villas, bungalows, cottages, and condominiums in gated developments that offer plenty of open space, scenic views, good broadband connectivity, security and other state-of-the-art leisure amenities like swimming pools, gymnasium, spa, meditation room, work pods and others.

Located away from the densely packed metro cities, these vacation homes offer an escape abode for families to holiday safely. They have become a medium for individuals to rejuvenate and unwind in tranquillity at their property whenever needed.

Vacation homes have become more appealing than regular homestays and resorts, as their surroundings provide avenues for exploration without worrying about social distancing. Plus, they help strike a better work-life balance and enable members to spend quality time with loved ones in the comfort of nature.

The demand for a second home or vacation homes in India has been driven by high net-worth individuals, corporate professionals, expatriates, non-resident Indians and other professionals with steady incomes and savings who are working flexibly and can cash on spacious vacation homes set amidst verdant greenery. In Maharashtra and Goa, Alibaug, Lonavala, Sindhudurg and Panjim have especially bloomed as vacation home markets. Similarly, Shimla, Kasauli, Rishikesh, Dehradun, Ooty, Coonoor and areas of Darjeeling and Sikkim are among the preferred regions for vacation homes across the country.

The resurgence in demand has caught the attention of big and small developers, who have been launching projects on the holiday home concept. Though home prices are slowly inching upward, the market for second homes hasn't dried up, and industry experts expect consumer interest in vacation homes to grow leaps in the coming years.

At Paranjape Schemes, we cater to a diverse clientele with homes and properties that redefine everyday living. Choose from many of our sea-view vacation villas & nature-centric plots in & around Pune and in Konkan to build the vacation home of your dreams for you and your family. Visit https://www.pscl.in/ for more details.

References:

• https://timesproperty.com/news/post/5-vacation-rental-markets-in-india-that-top-the-charts-blid3945
• https://timesofindia.indiatimes.com/blogs/voices/key-trends-in-indias-second-home-and-vacation-home-market-in-2023/?source=app&frmapp=yes
• https://www.entrepreneur.com/en-in/growth-strategies/demand-for-second-homes-is-gaining-traction/439054
• https://meraqiadvisors.com/research/vacation-homes-and-holiday-homes-market-in-india