Second-Home Market Gears Up In India

Rajeev Bairathi, director (investment advisory) of DTZ-India said, "Low pricing of these second homes in Tier II & III cities makes them attractive, compared to buying second-homes within urban limits. Also, these offerings are across the price spectrum, depending on the locations. Another advantage is that a service-class professional can avail benefits of both HRA and home loan tax benefit (in case availed)," reports Economic Times.

The real estate market in Mumbai believes that the second home market is recession resistant. In Mumbai, the maximum second home projects are launched in peripheries like Lonavala, Alibag, Roha, Kasara, Shahpur and Murbad Karjat.

"People are mainly looking for something that is different and out of the ordinary. In that sense, both villas and apartments with good facilities find takers," said Mistry.  

Besides, before investing on vacation homes, it is important to research on the potential growth of the destination. As, capital growth is usually higher in places that attracts tourist round the year and have healthy economic growth. Also, if the destination attracts people other than tourism purpose, such as meetings, incentives, conventions, exhibitions and others, the demand for property will be continuous in such places, which in turn will increase demand for your property as well as it will be easier to find tenants for your vacation home.