Vacation Homes Are A Worthy and Tangible Investment, Says Isprava's Nibhrant Shah
Some industry reports suggest that the investor is gradually moving out of the real estate market while some maintain that there has not been any such development. Though the short-term investors are gradually trying to keep at bay, the long-term investors are in the business like before. After all, the Indian sentiments that yearns for security still puts most of its money in real estate.
Moreover, in the investment segment it has been observed that among the well-travelled, top-notch executives, second homes and vacation properties are becoming a choice of investment.
In an interaction with PropGuide, Nibhrant Shah, founder, chief executive officer and director at Isprava shares insights on this new dynamics.
Q: What is the status of vacation homes and second homes in India?
Shah: The demand for vacation homes continues to grow for those who are unable to travel for frequent holidays. For such buyers, these properties are a worthy and tangible investment. Exotic locales around India and the world are a huge attraction for developers because people are constantly looking for virgin territory that is a stark contrast to their home city. You can put a price tag on exclusivity and no matter what, there will always be takers. Yet when it comes down to buying these uber-luxury villas in some of the most exotic locales, they also require a sense of home, of warmth and of intimacy.
Q: Did demonetisation have an impact on this segment?
Shah: Demonetisation may have slowed down the economy for a while but opportunities remain aplenty in the luxury space. While uber-luxury real estate has remained largely unaffected, affordable luxury has found more interested players. Those who look for a vacation home or a villa, have already bought their primary home.
Over the years, the number of people with high disposable incomes has gone up and it is in this bracket of people that the concept of affordable luxury comes into play. A lot of locations are now coming up with gated community projects which are affordable yet luxurious in every way. These homes that have sharing facilities along with a residents' society to keep all abreast with the happenings of the community.
Holiday homes need to have all the luxury and advantage of what one would witness on a vacation and all the comforts of a home. They can be indulgent, expensive and luxurious, but they will always stem from a desire to get away.
Q: Who is the potential investor for vacation homes?
Shah: An investor who plans to buy a holiday home, looks for a home away from home, where they can go on a holiday without any planning or money required. They are looking for a place where they could go for a spontaneous weekend holiday, or spend a week there.
Another benefit is the potential profit one might make if they decide to rent it. Moreover, the property also appreciates over the years, increasing the net worth of the investment.
Speaking long-term, a holiday home can be an ideal location with access to all the necessities making for an excellent primary residence after the investor retires.