India is a country where the young are reaching higher, dreaming bigger and demanding more. It is a country that is challenging the limits of aspirations, ambitions and possibilities everyday. It wakes up every morning a little younger and infinitely more ambitious in spirit, determined to seek solutions to its problems, and hustling its way to growth.
The trend of owning second homes emerged post the liberalization of the Indian economy, and gained steam in the mid-1990s as the country went through its first real estate upswing
If there is one sector, that reflects the changing aspirations and growing needs of this new India, it is the residential sector. Owning a home was a result of a lifetime’s savings. But Strong economic growth has led to rising incomes, better availability of attractive home loan options, wide range of supply and growing aspirations. In fact, in the metropolitan cities, it is not uncommon to see young professionals aspiring to own more residences than one. There is thus a ‘Second Homes Wave’ in the country.
Owning of second homes in India is a relatively new phenomenon emerged post to the liberalization of the Indian economy, and gained steam in the mid-1990s as the country went through its first real estate upswing. No single factor can be attributed as the driver of the second home wave. It was a combination of a host of converging factors that led Indian home buyers to explore the option of second home purchases. Some of these factors include:
Macro
· Strong economic growth
· Emergence of an upwardly mobile consumer class
· Rising aspirations
Sectoral
· Real estate as an attractive investment option
· Improved real estate transparency levels
· Wider options to choose from
· Availability of high-quality residential formats
· Competitive home loan rates
· Flexible loan financing – EMI holiday by developers
· Increased NRI buyer interest
All of these factors have led to the initial wave of second homes in India. Consumers started looking beyond their first home. When the real estate sector went into a consolidation mode during the closing years of the 1990s, the interest for second homes slackened a bit. However, a subsequent wave of second homes in the country has come about. This has been driven by the resurgence of the economy in the new millennium and the emergence of end-user demand for homes, on the back of attractive mortgage rates as well as rationalized home prices. This trend has remained consistent ever since and has manifested itself in varied typology and geographies across India. Now it is not a dream but a reality that you can owe a second home.
Links you can refer:
