Rush for Holiday Homes

Rush for Holiday Home
Rush for Holiday Home

Holiday homes, vacation homes, second homes – call them what you will – are fast catching up as a niche housing segment in India.

With increasing affluence on the one hand and a growing realization that there is a need for a relaxed lifestyle at least on weekends, the concept of second homes appears to be gaining popularity.

According to the National Council of Applied Economic Research, the number of households described as rich is expected to reach 11 million by 2013 from 3 million in 2003. Meanwhile, the number of middle class aspirers is predicted to leap even more dramatically, from 46 million to 124 million. The number of HNIs in India is growing at 20% YoY, second only to Singapore.

Exactly how big the market for second homes is not clear. In 2012, 30 million homes were in demand in Indian metros and tier-two towns.“The second home market is a big chunk of this, since most high income buyers have already taken care of the need for a first home,” says Rohit Gera, MD, Gera Properties, Pune. But, as Arun Chitnis, AVP  Marketing, JLL, points out, “It is not possible to put a figure to the second home market. What is a second home for some could be a first home to others.” Still, experts believe that the second homes market is growing by at least 20% a year.