Owning a second home in places away from the hustle and bustle of hectic city life may have earlier been restricted only to affluent individuals but now the trend is changing. It’s no more just the top entrepreneurs who are investing in the second home market, even middle and upper middle level management now see such homes as feasible getaway investments.

The primary second-home buyer segment is now the middle-to-top management and entrepreneurial class, usually in the age bracket of 35-45. They attribute this shift to a change in mindset. There has been a fundamental shift in the overall mentality. Second homes have emerged as an acceptable investment route for a lot of people now and owning a farmhouse, home in the hills or a beach cottage is certainly a matter of personal pride and prestige.

Destinations such as Goa, Pune, Alibagh, Khandala, Lonavla and hill stations like Dehradun, Mussoorie, Ooty and Simla are in high demand among the new second home buyers.

The price range for second homes can cost anything between Rs 15 lakh to even Rs 2 crore! Yet, their demand continues to soar. Developers on their part are understanding this inherent need in people to own holiday homes that are away from the city. Hence they are coming up with a number of projects to cater to this increasing demand.

OSB Group has Kot Farms located near Kotputli which offers the chance to experience modern luxurious living in comfort. Their Sea Shells project in Goa boasts of being an integrated luxury housing complex. The demand for second homes is expected to grow fast in the coming years. There are special offers to further attract the buyers in which they can go for this option on a time sharing basis. They can thus use their property to rent out like a resort and fetch good return for their investment. They may retain their property till such time they get expected resale value.

Real estate majors such as Ansal API also have golf villas in Lucknow, apartments in Kundli, Sonepat, Jodhpur and Karnal that address the need for a second home. There has been at least a 15-20% increase in the second home market. People see this as a good investment option and it is a growing market.

Places such as Pune, Talegaon, Lonavla or Jodhpur are also seeing a lot of buyer interest. Disha Direct, a real estate marketing company and a leading player in the second home market, has a number of options in store. Their villas in Thane, 'Sylvan Springs', spread across 82 acres and 134 plots offer a mix of recreation and scenic beauty. Every individual has the desire to own a bungalow, want to spend quality time with their families and also want the best investment options. That’s why their market is catching up so fast in India as well.

So now you now where to head when you plan your next holiday destination - Home, sweet second home!

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  • dear rashmi,

    your posting shows your deep knowledge of property trend all over india. i as a lawyer dont see this trend to be healthy. i am from delhi and for delhi crowd, gurgaon is happening. but problems like, water, electricity, sewerage, crimes is rampant. if the progress is to be looked from a builder's view, its progressing. from a common man's point of view, he is being trapped after being lured by full page advertisements in dailies.

    regards

    Rajiv Gupta

    Member Advocate-Delhi High Court
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  • Look before you leap

    Second homes top the Wish List of many urban dwellers.
    Reasons vary from getting a hideout away from home and the hustle bustle of city life to the added prestige value of owning a second home
    But before you put in your hard earned rupees in that dream second home, run a due diligence process on the entire exercise

    Get familiar with the local laws and legislations where the project is located
    Check for all permissions that allow the change of use from Agriculture to residential
    Title Check would be paramount with fragmented land holding rampant in almost all semi urban and rural areas
    Dont accept doucmentary evidences at face value. Get them verified for authentication, from the concerned issuances Authorties.
    Many projects have been left in a limbo due to fraudulent papers being used by developers to hoodwink clients and vanish with the money
    Also remember that unlike in cities, verification of legal documents in such locations are more time consuming and best done with a local lawyer.
    Being penny wise here wont help.
    Also check the local zoning maps and survey plans to determine the extent of development that the developer can do. He may promise you the moon, but later exit comfortably citing development rules. At that point of time you would not have a smooth sailing making him enforce his commitments.
    Look for approvals of sanctioned layouts from housing finance companies. That can surely give you some comfort level.

    The Devil is in the fine print : Go through all clauses in the agreement and dont go ahead with the deal if some adverse clauses exist. Developers are known to insert more clauses that are favorable to them and leave property purchasers at their mercy. Dont give in to such agreements and insist that such clauses are deleted. Always insist a time date for possesion and a penalty clause in case possesion is delayed. Consumer courts rely only on registered agreements while hearing cases of delayed possesion and awarding penalties as stipulated in them.

    It is well worth the addtional efforts you make to ensure that your hard earned money is in the right hands and your dream home doesnt seem like a Mirage.
    CommentQuote