Individuals, including tech entrepreneurs, corporate professionals and non-resident Indians (NRIs), are taking an interest in buying a second home as they tend to get away from cities amid the pandemic. With this, the prices of homes have increased from Rs 50 lakh to Rs 50 crore.
Real Estate companies like Tata Realty and Infrastructure Ltd (TRIL), Isprava, DLF Ltd, etc., witness an increase in demand for individual homes at higher budgets. The individuals are looking for such houses that are not only large but also have office space as they want to use it for individual and investment purposes.
As per a media report, the individuals tend to buy their second homes in Goa, Kasauli, Coonoor, Alibaug and similar locations away from the city.
TRIL has reportedly sold its stock in phase 1 of ‘Myst’, the luxury villa project, in Kasauli and launched the second phase in April 2021. The company sold homes worth Rs 4-6 crore over the last year under its ‘Prive’ project in Lonavala. Only a few apartments (priced around Rs 1 crore) are left.
Interestingly, people are looking at buying second homes not just in India, but also in Dubai and London. However, NRIs are primarily interested in buying assets in India for investment purposes.
Most of the second home inventory the real estate companies sell are fully furnished ready-to-move homes priced between Rs 5 and Rs 50 crore. Demand for buying such homes has witnessed a 30-50% surge as individuals seek larger living spaces with an office. The reason behind such an increase is the pandemic and how it forced people to learn how to work from home.
According to Dhimaan Shah, founder and chief operating officer of Isprava, buyers who would have spent Rs 6-7 crore on a home are now investing Rs 10-11 crore by purchasing properties. “There are also several clients who are buying big-ticket homes of Rs 20 crore and more with us in Goa and Alibaug while renting in their primary cities of residence because rental yields are so low in the metros,” Shah was quoted as saying by Mint. “We are witnessing a clear trend towards a younger demographic (30-45 years of age) purchasing homes with us.”
Similarly, several real estate companies like DLF Ltd. see significant demand in buying residential homes. The company’s Samvana I, a premium residential and plotted project in Kasauli, has recorded a rise in interest from homebuyers since the outbreak of the Covid-19 pandemic, especially buyers from the National Capital Region (NCR).
