Newsdetail

Luxury Buyers Set Their Sight On Second Homes Market

By Rishabh Chamoli | 2022-11-06

For luxury second homebuyers, a home amidst nature, with wellness amenities, strong connectivity, and good quality of life are top priorities.

The second homes market has been experiencing a high demand since mid 2020, with luxury buyers motivated to seek out properties at holiday destinations with easy access to beaches, mountains, or other scenic spots. In fact, according to the latest report by a real estate advisory services firm, 58 per cent of the 400 High Net Worth Individuals (HNIs) it surveyed want to buy farmhouses or other related properties in the near future. Also, buyers and investors are willing to go the extra mile and close to 26 per cent of the respondents are willing to invest around Rs 1.5 to three crore for quality housing and state of the art amenities.

Top corporate executives, businessmen, and start up founders saw their wealth increase exponentially in the last two years and therefore they are increasingly eyeing a second home with porches, balconies, and swimming pools so that they can have a place where they can relax and take in the fresh air. Besides, multiple offers doled out by developers have made such properties far more lucrative and attractive for several buyers. Additionally, real estate has always been an important diversifier in HNI investment portfolios, and now amidst the economic volatility, it remains a reliably stable asset, elaborates Anuj Puri, chairman, Anarock Group.

The rising popularity of farmhouses
The pandemic highlighted the need to prioritise mental health and seek respite from the stressful working environment, especially for high functioning HNIs and UHNIs. Besides, a second home tucked away at tranquil locations far from congested cities is the perfect setting for anyone looking to relax. Farmhouses are nestled in nature and surrounded by vast expanses of greenery, and fresh air, which helps in improving ones well being. Also, uninterrupted access to green open spaces coupled with beautifully designed farmhouses not only provides a change of scenery but also makes for a truly luxurious experience. At the end of the day, luxury isnt just about owning a property, it is about the entire experience that comes with it, and a farmhouse in the mountains is a classic example of this, says Nibhrant Shah, CEO and founder of a leading second home development company.

The number of ultra high net worth individuals in India increased 11 per cent last year. It grew to 13,637 in 2021 from 12,287 in 2020. This is the highest percentage growth in APAC. As stocks, mutual funds, and the gold market have not been giving great returns, UHNIs are redirecting their money to invest in plotted developments. The plotted development segment has been seeing bullish demand with customers being a mix of investors and end users. In addition to this, we see new age customers choosing to invest in plots as unlike earlier, these plots have modern amenities and give buyers greater flexibility to build their dream homes as per their choice, explains Ravindra Pai, managing director of a real estate company based in Bengaluru.

Focus on wellness
From searching for properties with gardens, to considering the air quality in the area, to looking for sports and wellness amenities when considering a location, buyers are focusing on their physical and mental well-being. Locations offering the above as well as those which have ample access to nature through beaches, mountains, and national parks will continue to attract buyers in the future, stated Savills Research. “Today’s homebuyers are drawn to the resort-like comfort, convenience, and amenities. Second homes and plotted projects offer such amenities and homebuyers are willing to spend more to avail these luxuries. Home automation is also being rapidly sought-after, with consumers seeking more convenience and knowledge at their fingertips,” Pai mentions.

He further adds, Buyers are now splurging on smart features such as automated video doorbells, remote controlled curtains, and even automated temperature settings and lighting controls. Buyers today are looking for a second home rather than a holiday home that they will only use occasionally, so internet connectivity and fast broadband speeds are also critical so that they can work efficiently. They are also looking to switch to green building concepts, with features such as air purification, lighting, thermostat control, greenhouse monitoring systems and humidity control sensors becoming very popular. Wellness housing community with a plethora of features such as walking trails, reflexology pathway, organic farming, and oxygen infused clubhouse, yoga court, scores high on the list of buyers. Overall, second homes have to pull double duty by providing both, the traditional sun, sea, and countryside; and also key amenities to promote personal wellness.

Looking ahead
The luxury housing segment, including the second homes market appears to be on a constant rise. 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. Recent reports have suggested that Indias second home market is set to grow at 23.63 per cent CAGR in the next five years, especially on the back of investments made by luxury buyers, concludes Pai.