While broad housing market looks for the sales pick up signs, the segment of vacation homes has done pretty good, motivated by the
demand from the high net-value individuals, wealthy industrialists and the non-resident, the Economic Times reported.
According to Residential Services CEO Ashwinder Raj Singh, vacation homes consist of five to seven percent of the country's total home sales including
places like Kerala, Shimla, Goa and places around Mumbai such as Khandala and Lonavala are the most favored locations. Considering its business potential, the developers are assembling these locations to construct projects that serve the segment. EMGEE Group, a Mumbai-based developer, is building two projects in the most preferred leisure address - in Goa. A gated villa project called ANANTAM and community apartment is spread over the 12.5 acres located at Dona Paula, Goa.
Puranik Builders have recently launched its second phase of the 3.5-lakh-sq-ft villa project called 'Puraniks Sayama' that is spread over the 10 acres of land in Lonavala, along with the increase in price. According to Brigade Enterprises CEO Om Ahuja, the demand for vacation homes in Chikmagalur and Mysore, where they have four second-home projects, is doing good.
"The trend has helped our confidence to release three additional projects in Mysore in the forthcoming months," he said, emphasizing that the project of the company in Chikmagalur has been 90 percent sold out, and the other one in Mysore is already 80 percent booked.
Increasing income levels with a goal for improved lifestyle is making the Indians' decision to purchase vacation homes. "Considering the weight of spending, it should appeal to logic and reason also. Thus, the call for these is steady and slower than the larger quantities of swift sales. We make four or five units of sales per month," according to George Menomparampil, MD, of Zion Hills, with a weekend project near Kolar and Bengaluru. Its developer has sold the whole initial phase of the 250 villas.
An estimate of two million clients in India is prepared to purchase their vacation home if they are given the correct product in their chosen location. About 85 percent of this goes for homes within Rs 50 lakh and below.
