Post-pandemic, the second home culture is catching up, says Dr. Sachin Chopda, Managing Director, Pushpam Group
MUMBAI, Nov 14 (The CONNECT) - The second homes' market that was pegged at $739 million in 2019 grew at a CAGR of 37.34 per cent in the following two years. The aggregate size of holiday homes, by the end of 2021, amounted to $1.394 billion. The retirement and second home market segment in India is expected to grow at a CAGR of 23.63% in the next 5 years, according to a report by 360 Realtors.
The need for a safe home away from the high-density hotspots, along with capital appreciation and rental income, appear to be key factors boosting the second homes' segment. One such location in this segment that has emerged in the past few years is Alibaug where developers are now specializing in building high-end villas for the High Networth Individuals (HNIs).
A roll-on-roll-off (Roro)-cum-passenger ferry service is available between Mumbai and Mandwa near Alibaug. It takes about 45 minutes to reach Alibaug from Mumbai. The ferry was launched in 2020 and can accommodate 145 cars and around 500 passengers. Just a few days back, a water taxi service was launched from Domestic Cruise Terminal at Mazgaon to Mandwa. The watertaxi – NAYAN XI – undertakes a total of six trips, three from each side. The operator Nayantara Shipping Private Limited is also awaiting clearance from the Maharashtra Maritime Board and Mumbai Port Trust to operate a similar service from Gateway of India.
Dr. Sachin Chopda, Managing Director, Pushpam Group said “Earlier, the concept of investing in a second home or a farmhouse was popular only among the celebrities, HNI's or the elite class. However, post-pandemic, the idea of a second home is being widely accepted by the middle and upper-middle class as well.
Also, the RoRo services and the recently launched water-taxis have cut down the distance between Mumbai and Alibaug. Off late, there has been a lot of demand from the millennials or working professionals due to WFH or those having adopted a hybrid model, preferring to work in isolation, away from the hustle and bustle of the city. This also helps them to maintain a proper work-life balance where they can live in bigger homes in the lap of nature, spend quality time with their families and also ensure productivity at work."
Last year Actor Juhi Chawla had bought a land parcel in Alibaug for Rs 1.89 crore, documents accessed by Zapkey.com showed. The property is spread across 0.75 acres and is located in Mapgaun. Also in September last year, Bollywood actors Deepika Padukone and her husband Ranveer Singh had bought a second home in Alibaug for Rs 22 crore.
According to a report in a leading English daily, Anushka and Virat purchased a luxurious farmhouse in Alibaug on the occasion of Ganesh Chaturthi [August 31]. As per the report, the house will be set up on 8 acres of land near Zirad, a village in Alibaug. The couple is reportedly spending Rs 19 crore on the farmhouse. In December 2021 last year, Indian cricketer Rohit Sharma bought land in the coastal town of Alibaug in Maharashtra's Raigad district.
Homebuyers in Mumbai are looking for second homes in the range of Rs 2 crore to Rs 50 crore that are just about a 90-minute drive from the main city. During Covid-19, several high-net-worth individuals (HNIs) and young working professionals in vertical Mumbai have bought properties in nearby Alibaug, Karjat and Lonavala.
"Customers are looking at weekend homes as income generating assets. These homes are used around 30 to 40 days in a year. Buyers can rent these units on a per day basis and can generate good rental income. This trend is catching up and a lot of developers are giving this option to the buyers. This makes weekend homes a good short-term as well as a long-term investment,” adds Dr. Chopra, who heads a leading holiday homes development company.
Savills India’s recent survey concluded that almost 60 per cent of the respondents would like to invest in a second home within a gated community. Standalone farmhouses or bungalows are usually set in isolated locations, where maintenance and security are the prime concerns. Also, the shortage of electricity and damaged roads leading to the property add to the hardships. The gated communities come with diverse choices of configuration such as pool villas, resort apartments, row houses and along with all sorts of basic and exclusive amenities.
Additionally, the combination of remote working, increased affordability, the desire to diversify investments, and attractive interest rates on home loans are creating an excellent atmosphere for homebuyers to invest in second homes. Based on these favourable sentiment drivers, holiday homes in India are positioned for substantial expansion this year