As per the latest report by 360 Realtors prepared in partnership with Axon Developers, the Indian second home market is slated to grow fast in 2025. The market is currently sized at USD 3.2 billion and is expanding at a sweet spot of CAGR of 22-23%. It is receiving immense attention from home buyers and investors alike, becoming a strategic asset for the many affluent buyers.
“Average urban dwellers are now understanding the importance of spending time amidst tranquillity & calmness of nature. Refreshment and rejuvenation are no more just a buzz word, but becoming integral part of lifestyle. This is resulting in increased demand for villas, cottages and farm stays in pristine & picturesque destination.”, Quoted Mr. Ankit Kansal, MD, Axon Developers.
As per the outlook report, India has around 16,700 second home units including second home villas, farm stays and branded plots. The study has tracked only gated communities with at least 30 units and not included standalone properties and bungalows.
Around 48% of the properties are located in the Western part of India, followed by North with around 29%. This is followed by East (9%) and South India (14%). West of India comprises a host of scenic regions such as Western Ghats, Arabian sea coastline, Sahyadri hills, Konkan and much more, which makes it perfect ground for nature centric lifestyle real estate to flourish.
The report has been prepared by tracking 30+ leading second home markets in India. This includes but are not limited to Goa, Coorg, Ayodhya, Haridwar, Rishikesh, Srinagar, Ooty, Alibaug, Sindhudurg, Tilari and Kovalam. Not to forget, Pondicherry, Karajat, Ratnagiri, Darjeeling, Kalimpong, Chamba, Tehri, Shimla, Solan, Kasauli and much more.
“We have adopted a bottom-up approach in the research. Individual markets have been tracked, evaluated, and analysed. The aggregate size has been calculated by cumulatively adding all the individual market(s).” Further added Mr. Kansal.
The report has also shed some important insights on property prices and growth trends. The average land price of second home is INR 3150 PSF and growing at a CAGR of 10.1%.
The second homes and vacation rental will continue to be a sunrise segment in Indian real estate. Grade-A real estate developers, hospitality brands, renowned designers and key tourism management companies are entering the segment, lured by its long-term growth potential.
Big developers such as DLF, Axon, Tata Housing, Lodha, etc. are coming up with mega launches in the space, gradually replacing local builders. This is also resulting in emergence of new-age gated style communities of second homes with lavish & swanky homes, top-tier amenities and a string of wellness features.
