In the pre-COVID phase, second home or holiday homes have noted a steady rise in demand. Individuals wish to spend their weekends at popular locations away from city limits such as Lonavala, Khandala, Alibaug and more. The travel constraints and monotony born out of the lockdown have played a crucial role in reviving the trend of holiday homes. In addition, the pandemic has urged several homeowners to reconsider their housing option, in this new normal.
The inclination towards a healthy lifestyle has also been a catalyst in accelerating the demand for these properties. Buyers are preferring houses in peaceful locations such as hills, where they can enjoy nature far away from the hustles and bustles of cities. People are opting for options that provide them with opportunities to re-energise, unwind and relax.
Increase interest by HNIs & UHNIs
According to Sotheby’s report, UHNIs during lockdown indicated that they will prefer those houses, which include plenty of open spaces, large living and bedrooms, home office or study room, gym or recreational activities and large staff quarters. HNIs or UHNIs going for a second home or a holiday home are looking for an abode that lets them rejuvenate from their hectic everyday life. However, such buyers would be investing in these homes only when they get desired facilities, picturesque surroundings, ideal location, uninterrupted connectivity, and a trustworthy developer who has been known for delivering a wide range of such projects.
Numerous locations, outside megacities, have been viable second-home destinations, with their audience niches. Average prices in major middle-class-favoured second home destinations range between INR 3,000 – 12,000 per sq. ft. On the basis of the buyers’ ability, the average area of these homes usually begins at 2,500 sq. ft. and can extend to 10,000 sq. ft. additionally; individuals are looking out for spacious 2BHK, 3BHK or 5BHK options.
Reduction in home loan interest rates
As premier lending institutions are offering lucrative home loans, the interest rates on the same have witnessed a historic low. The December quarter marked the recovery of the housing market, simultaneously leading to an increase in home affordability. Government-led incentives like lower stamp duties in Maharashtra coupled with significant discounts from developers have piqued the interests of potential buyers. Home loans at pocket-friendly interest rates promote savings while creating an asset for end-use or investment purposes. A lower interest rate provides borrowers with an option to increase the loan amount, helping broaden their choice for a more luxurious property, inclusive of state-of-the-art amenities and lifestyle facilities in posh neighbourhoods.
The virus outbreak has established that owning a property is way better than dealing with the uncertainties of living in rented accommodation. However, the overall real estate sector is still under the recovery phase and gradually witnessing an up rise in demand. The government has provided various aids and its continued support is essential. During these unprecedented times, a boost in the realty sector is a silver lining. With everyone banking on a sharp V-shaped recovery with the provision of the vaccine, 2021 is poised to be a strong one for holiday home transactions.