Second-Home Market Gears Up In India

Bangalore: The second-home market is gaining popularity in India. Second home can be used as a vacation home or for personal use. However, developers and investors are showing their interest in second-home market.

"The reasons for buying a second home are mostly for investment purposes or for polishing up one's status," says Jimmy Mistry, Principal Architect and CMD of Della Tecnica, reports Namrata Kohli of TNN.

The most preferred second home destination in India are Mussoorie, Lonavala, Goa, Dehradun, Shimla, Kasauli, Ramgarh, Mukteshwar and Alibag.

According to Sanjay Arora, broker of Earth Homes, over the last one year, the real estate market in the hills witnessing healthy appreciation of 20-30 percent, which was slow earlier.

Some of the most favourite second home destinations are Dharamshala, Nainital and Shimla, mainly for people who live in Delhi and Punjab, added Arora. Over the past few years, the property prices in these areas are increasing considerably and showing no chance of coming down.

Almost 75 percent demand for second home comes from high net worth individuals (HNIs) and the upper middle class group fills the remaining percentage. Buying a second home is not necessary for many and it is more of a lifestyle boost. So, the availability of disposable income is necessary when buying second-home or vacation home.