While many industries have faced repercussions due to the Covid-19 pandemic, real estate has managed to hold its own in a volatile investment market. Real estate continues to maintain the reputation of being a safe and stable investment option that provides good ROI (Return on Investment) to buyers, irrespective of whether they are looking for a primary residence or an investment avenue.purchasing a second home is often not just about investment, but also about a lifestyle choice, an alternate residence, a future residence, or simply diversifying assets. Whatever be the reason for consideration, there has been a definite uptick in interest in second and additional homes, especially for NRI buyers.
with home interest rates being lowered across the board, and a reduction in stamp duty and registration rates in some states, this is an opportune moment for those who are considering investing in additional properties, either from the point of view of investment or a holiday home back in India.various reports have highlighted that many perspective buyers are contemplating to make most of the current prices and low interest rates to invest in a second home within the next year and a half. This is, once again, influenced by the Covid-19 pandemic, as reports mention an increase in NRIs and residents alike looking to purchase primary or secondary residences as seasonal or holiday homes, as opposed to most of them previously interested in buying mainly for investment purposes.
For hnis in particular, the decision to purchase multiple homes is as much a lifestyle decision as it is an investment diversification option. They are interested in investing in domestic as well as international locations. Goa, for example, is a popular choice for second homes as it is a popular and much-loved tourist destination for Indian residents and NRIs alike. Overall, HNIs are leaning towards investing in multiple luxury housing properties as a means to diversify their portfolio and asset exposure. Many of these HNIs are NRI buyers who wish to have properties that serve both purposes – a long term investment that is also a great place to stay when they are visiting India.
The lockdown forced people to WFH (work from home), many for the first time in their lives. They started seeing their home in a different light. This led to increased expectations of what a home should be like, how it can be improved or modified. Many realised they needed a more spacious home, someplace where they could include a separate home office or studio. For others, a home that was more suited to their lifestyle – now that they were spending so much time at home, they had to change their homes to suit them and fulfil their needs and expectations.
The “work from home” status that has continued for almost a year and a half now has changed many lifestyles and lifestyle expectations. Many people chose to move to different cities, states, as the flexibility to work from anywhere led people to expand their horizons. This has also played a part in people being able to experience how tourist destinations are from the point of view of a resident, leading many to show an interest in relocating to a second home in these hotspots as per their need and convenience.
For the same reason, a second home also provides a getaway for people who have realised their primary home doesn’t fulfil all their requirements, or even just for when you need a break. Owning a holiday home is now seen as a more sensible decision as compared to renting. For holiday home purchases, buyers have become very discerning in terms of the space, facilities and provisions available in the property, and this trend seems like it’s here to stay.
The Covid-19 pandemic has also led to everyone quickly adopting the digital life. This has also influenced the real estate industry by making it easier for NRIs to virtually visit and check out the property before committing to a purchase. The entire purchase transaction and paperwork can also be done remotely nowadays, with proper data security and encryption. This has led to a major upswing in NRI investors in India, a trend that is likely to continue long term.
All these factors have led to the stable growth of real estate even in the midst of a pandemic. Be it as a primary residence, portfolio diversification, or an aspirational lifestyle choice, second and additional home purchases are on the rise and here to stay.
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