Lincoln Bennet Rodrigues, Chairman & Founder, The Bennet and Bernard Company sares his opinion on the second homes segment. The demand for second homes emanates from a variety of factors that have caused fundamental shifts in the industry over the last two years. The luxury holiday home business in India has witnessed significant prominence and appreciation in the recent times, making it one of the most dynamic segments of the real estate sector and witnessing growing demand from end users as well as investors. Luxury holiday homes segment fared well in context of the pandemic as the target group for luxury offerings was not impacted by the pandemic and further took advantage of the market conditions to invest, thereby creating a niche for second homes. Today, people feel the inherent need to make progressive lifestyle changes to lead a more balanced and healthy life. Even before the pandemic hit the country, the tranquil charm of Goa has attracted many investors looking to buy holiday homes because of its culture, lifestyle and the value for money it offers.
Also, the Covid-19 outbreak has given rise to a more urgent motivation - relative safety from the pandemic in holiday homes apart from better scope for capital appreciation. People are looking for spacious own homes and are purchasing second homes as they would have a secure and safe home and would also be a good alternative to their primary abode. Moreover, the era of work from anywhere is set to continue, a major factor explaining why people are looking for holiday homes and have a clear affinity towards gated communities. Themed second homes are slowly becoming a noticeable trend in offbeat destinations around the country. We continue to grow at around 20 per cent over the last 2 years driven by these new emerging consumption patterns. The emphasis now is to equate luxury dwelling with quality of life and people are prepared to spend to get the best that life has to offer. While demand for these homes is driven primarily by high net worth individuals, the upper-middle section of the society is also now fuelling the demand for luxury holiday homes.
Improved affordability is also one the major key demand drivers of second homes. Though the property costs have been rising over a period, so is the affordability due to rising income and lower interest rates. A recent survey sheds light on an absorbing trend - the propensity of potential clientele to make an immediate investment into second homes. Unlike earlier, when capital appreciation and rental incomes were the governing criteria, an additional dimension of a safe home away from pandemic hotspots appears to have become a key consideration now. We are upbeat that the second home market in the country is poised to witness high traction in the near term.
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