The COVID-19 pandemic has undoubtedly been a time of immense adaptation. We have had to rapidly adjust the way we conduct our lives in virtually every aspect, from work and leisure activities to shopping and travelling, with these sudden transformations being accompanied by economic volatility that often generates feelings of unease. Remarkably, however, the real estate market has remained steadfastly strong during this period, particularly in regard to the second home market and property investment.
As such, seasonal destinations are experiencing significant rises in prices; leading the question of where exactly are potential real estate buyers turning their attention.
A Redfin analysis found that buyers’ interest in these properties rose 100% from October 2020 compared to the year before, and this trend has remained steady since June. Moreover, the increase in demand for second homes surpassed that of primary homes by 50%.
Top 10 Reasons Why a Second Home is a must in India?
Lets discuss the real reason behind this sudden increase in second Home demand across the length and breadth of India
Rapid Technical Advancements
The Tech Boom has been a major influence in the real estate market, particularly when it comes to the surge in demand for second homes. The COVID-19 pandemic has encouraged developers to use digital technologies to market their projects, and this has provided a significant boost to the second home market. Thanks to such technological advancements as virtual site visits, digital payment integration, 3D tours, and property booking engines, buyers have had access to an unprecedented level of convenience when exploring potential properties. As a result, this sector of the real estate market has experienced an exponential growth.
Millennials are driving demand for new products and services
The Millennial generation has experienced a dramatic shift in their involvement with the housing market. According to a recent study by the National Association of Realtors, for four consecutive years, Millennials have been the largest demographic of home buyers, constituting approximately 40% of all purchasers.
This surge in Millennial participation can be attributed to various factors: more major employers offering flexible or permanent teleworking opportunities; increased desire for freedom from daily commutes; and a newfound appreciation for second-home ownership that offers a balance between work and leisure without requiring full uprooting. With the convenience and security of having a home away from home, second property ownership has become an increasingly appealing alternative to traditional vacation rentals or hotel stays.
The economy took a hit in March 2020, but the real estate market quickly rebounded and has been growing since. Low interest rates and remote work have encouraged a “pandemic migration”. According to a web report from October 2020, 44% of workers can perform their jobs remotely (67% if they have a Bachelor’s degree). People are focusing more on mental peace and physical wellbeing, which has caused an increase in holiday home investments in India.
Popular areas such as Goa, Kasauli and Ooty are seeing increased demand, particularly from resort areas near major cities. As time passes, owning a second home is becoming a lifestyle statement and is booming in the real estate market.
Health and Mental Well Being
The hustle and bustle of life in densely populated, incessantly noisy metropolises can have a detrimental effect on our physical and mental health; as such, many people are opting to invest in second homes located close to beaches or mountain ranges in order to escape the urban lifestyle and enjoy the tranquillity of nature. Such environments provide a respite from the pressures of city living, allowing individuals to take time for self-reflection and regeneration.
This can help restore emotional balance and provide relief from the stressors associated with modern life. In this way, investing in a second home near a beach or mountain range can prove to be an invaluable investment for both one’s physical and psychological well-being.
Fractional Ownership of Holiday Homes
Although the concept of owning a Holiday Home, Villa, or Hotel Suite is often seen as being reserved for those who possess significant financial resources, HotelYaari has now made it possible to invest in the holiday destination of your choice and acquire a fractional stake in their luxurious properties for an entry fee that is much more accessible. This remarkable opportunity allows even those who may not have had access to such high-end accommodations before the chance to own a piece of their dream location for less than 5 Lacs.
Click on the link to learn about Fractional Ownership
Recurring Source of Income in Passive Mode
The renowned investor Warren Buffet is known for his famous adage, “If you don’t make money while you are asleep, you have to earn till you die.” These words have taken on a particularly salient resonance in the current economic climate, where financial security is even more highly sought after.
For this reason, many individuals are turning to passive income sources as a viable route to financial freedom. Investing in real estate is one such option that can provide a steady stream of rental income – an established and well-recognized source of supplemental income – thus making a second home an increasingly attractive investment opportunity. With the benefit of both a recurring income and the ability to enjoy leisure activities during downtimes, investing in property is undoubtedly a worthwhile consideration for anyone looking to build long-term financial stability.
High Rate of Property Appreciation
In the major metropolitan cities, property prices have become so highly saturated that there is limited opportunity for further growth. However, those looking to invest in property may find a more profitable alternative by buying a hotel suite or holiday villa in a less-crowded tourist destination. Such investments may offer greater potential for appreciation in the long run, as opposed to more heavily populated areas. Furthermore, investing in tourism-centric areas can provide additional advantages such as rental income from visitors and various tax benefits associated with owning a vacation property.
Restful and Luxary Stay
For those of us who have been working hard and need some respite from the toils of our daily lives, there is no better way to unwind than a stay at a luxurious 5-star hotel or Holiday Home villa. The indulgence that comes with such an experience is incomparable, offering a chance to relax in sumptuous surrounds and enjoy the kinds of spa treatments and quality time with family and friends that can often be hard to come by. It presents an opportunity to take a break from the hustle and bustle of everyday life and revel in all the finer things that life has to offer.
Change in Investment style
Investment styles of millennials have shifted away from traditional financial products such as fixed deposits, towards more diversified options such as stocks and mutual funds. There is also an increasing trend of fractional ownership of hotel condominiums or holiday homes, investments that carry a lower risk profile while offering the potential for appreciation beyond what traditional financial instruments can provide. Such fractional ownership also enables investors to diversify their portfolios into more unique assets with a relatively low capital outlay.
Send of Pride
Millennials today are in search of a deeper sense of pride than ever before; something that can be tangibly displayed in their possessions. Whether it’s a luxurious watch, the latest smartphone model, or even a hotel condo or holiday home, having such items can provide an instantaneous feeling of accomplishment and gratification. However, this type of pride goes beyond mere materialism; it is indicative of an individual’s ambition and drive to achieve success.
The second home market is experiencing unprecedented growth, and HotelYaari has created a unique platform to make it easier for people to purchase second homes, while minimizing many of the associated complications. By signing up for an account on http://www.hotelyaari.com, you can begin to explore a novel approach to achieving a satisfactory work-life balance.
Need not to say that, you can start in as low as INR 5 Lacs.