Home Buyers Investing In Second Homes In Non-Metro Cities As Holiday Homes

                The COVID-19 pandemic has given a new lease of life to the concept of a holiday home or a second home. With most of the corporate 
professionals working from home, geography is no longer a constraint. The need for segregation between work and personal life has 
fueled the concept of a weekend retreat in a holiday home. ‘Workcation’- the concept of working remotely from any picturesque travel 
destination amid extended work from home is also gaining currency as corporate professionals are looking to escape the monotonous 
routine at home. The demand for these holiday homes is driven by High Net-Worth Individuals (HNIs), expatriates, Non-resident Indians 
(NRIs) and C-suite corporate professionals who consider it as a form of social mobility and an attractive investment asset.

The dream of owning a second home within salubrious greenery has been an integral part of Indian ethos. The overall health, hygiene 
and wellness concerns during COVID-19 has pivoted the focus towards spacious holiday homes set amid verdant greenery, away from 
densely packed Tier 1 cities. Such homes located far from the hustle-bustle of cities enable individuals to truly rejuvenate and unwind in 
tranquility at their property, unlike hotels and resorts.

Furthermore, with competitive prices being offered by developers and low-interest rates on home loans, non-metros have become a 
preferred choice of investment for second home buyers. This is gradually attracting even the travel-savvy upper-middle-class, who 
earlier enjoyed annual holidays but can no longer opt for it due to travel restrictions. Buyers are considering option starting from plots 
where they can design and develop homes as per their need, to ready to move in condominiums, villas and floors, depending on their 
needs and budget. The benefits accruing due to COVID-19 come with built-in validity that has triggered a sense of immediacy among 
buyers to consider a holiday home.

Strategic location within a few-hour drive from cities, state-of-the-art amenities such as gymnasium, spa, swimming pool, etc., and 
innovative tech-driven experiences are hallmarks of these homes. The strategic location allows buyers to meet day-to-day requirements 
due to good connectivity and a robust social infrastructure. For residents in Delhi NCR, nearby places such as New Chandigarh, 
Panchkula, Kasauli, and Shimla have emerged as sought-after destinations for holiday homes.

From the investment perspective, second homes in non-metro cities are a relatively safe investment class with higher capital 
appreciation compared to homes in metros, especially during COVID-19, when alternative classes such as mutual funds, shares have 
seen diminishing returns. These properties can be rented out to home-stays and tourism businesses- a booming market promising an 
assured and stable source of income to investors.

However, buyers must be cautious and consider several factors while buying a second home. While strategic location, good connectivity 
and accessibility and world-class amenities are the predominant criteria, buyers also consider other factors such as lifestyle quotient and 
curated experiences. The COVID-19 pandemic has invariably pivoted the focus towards organized real estate due to their ability to 
adhere to standard hygiene and wellness measures. Hence developers with an excellent track record of delivery and sound credentials 
are likely to maintain a competitive edge in the market. With the festive season approaching, consumers will likely evaluate offerings 
from the perspective of value-added services such as free parking space, waiver on maintenance charge for a limited time, and many 
more. COVID-19 has also accelerated the deployment of next-generation technologies that have subsequently fuelled the demand for 
smart and automated homes. Amid sustainability gaining a new currency in this unprecedented time, large open spaces such as 
balcony decks with lush greenery and biophilic designs are increasingly being preferred by home-buyers.

Riding on the wave of sustainability and prospective investment, the holiday home has emerged as a sought-after option for the 
segment of buyers whose jobs and lifestyle quotient have remained unaffected in the wake of pay cuts.

Source: Business world