The Covid-19 pandemic pushed a lot of sectors of the economy down the stairs, real estate being one of them. With the current market providing value-based investment opportunities due to the fallen demand, many well-off individuals are planning to invest in second homes. A recent survey by property advisory Savills India stated that around 70% of the respondents wish to invest in a second home costing Rs. 2 crores or less, 57%-70% of them wanting to invest in the coming two years.
Around 80% of the respondents interested in buying a second home displayed an intent to hold the properties for more than 5 years. According to the research, buyers consider several parameters like floor space, availability of medical facilities, connectivity to native cities, internet infrastructure and eventual return on investment. Respondents suggested buying properties at holiday destinations and preferred investments not just in the domestic market but also in offshore destinations.
60% of the respondents stated that they would like to invest in a home situated in a gated community with proper security and amenities like swimming pool, gymnasium, a health center and sporting facilities. A major new consideration taken into account by people nowadays, apart from capital appreciation and potential rental incomes, is finding a locality away from the Covid-19 hotspots.
The survey indicated that quite a few reasons could have led to such a rise in demand for real estate investments. Owing to the current work-from-home scenario due to the pandemic allowing people to work from anywhere, coupled with various organized players coming into the field of real estate business has somewhat contributed to this surge of demand. The advent of technology has made the investing process much more transparent, instilling confidence in potential buyers.
Rising affordability among the masses is also a significant factor. In spite of the fact that property rates have been increasing over time, a parallel rise in income and lowered interest rates have made investments a possibility for a lot of people. Domestic tourism is also gaining attention bearing in mind the restrictions placed on international travel, and has allowed people to look at these locations as prospective investment opportunities.
Approximately three-fourth of the potential buyers preferred houses in locations like Nainital, Dehradun, Alibaug, Shimla, Goa, Lonavala, Mahabaleshwar, Coorg, Ooty and Wayanad. Goa has rung in the maximum demand, with almost one-fifth of the respondents interested. Uttarakhand is the most sought-after place in the northern part of the country and the same goes for Tamil Nadu in the south. The top 5 international locations considered were London, Dubai, Portugal and Canada among others.