Tag Archives: Holiday Homes

Symbiotic relation of holiday home & affordable home?

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Track2Realty Exclusive

Bottom Line: First home for staying in and second home for holidaying in goes the conventional wisdom of the property market. And hence, second home (or popularly known as holiday home) is seen as a property investment by those who have enough to splurge without giving any serious thought to affordability.

Holiday Home, Second Home, Luxury Home, Investment Home, Homes for holidays, Holiday Homes, India real estate news, Real estate news India, Indian Realty News , Indian Property Market, Investment for weekend, Weekend Homes, Track2Realty, Track2Media ResearchWait! Before you think that second home is all about living life king size with all the luxury quotient attached, the market realities get you exposed to another rider. Is there any symbiotic relation between second home and affordable home.

There is a growing debate within the realm of second home market as to what is the psychograph of the buyer. Whether they actually go for affordability or location or amenities, or all these factors collectively drive the second home buyers. These are the emerging market realities and till recently the property investment pattern across the country in general and Mumbai in particular suggested that there existed a symbiotic relation between the second home and an affordable home.

Of course, the attraction that lies with the second home and what differentiates it from the first home is still the oft-repeated and clichéd parameter called ‘location, location & location’. Having said this, it is also the price point that differentiates the second home from the first home as people invest less in second homes compared to first home.

Analysts tracking the second home market maintain that second homes are usually purchased from an investment perspective or a holiday perspective. They believe affordability is one of the major factors influencing the decision to buy a second home. There are only a few examples where the second home has attracted a sizeable premium and the buyers have gone for the luxury amenities in the second home.

Moreover, most second homes are purchased on the outskirts of the city, where the market rates are usually low; however, when luxury projects outside the city offer the buyer natural open spaces and refined amenities, the cost is naturally driven up. So, it also depends on the profile of the buyer and his standing in the first home market, since affordable second home is a relative term. The ideal locations for second homes are normally close to nature, tourist spots or religious places.

Holiday home drivers

Psychograph of buyers at large suggests more investment with first home than second home

Affordable locations more in demand for second homes

Parameters of second homes changing fast and it is no longer just holiday home

An investment instrument than holiday options

Metro buyers go for open spaces with second home

Second homes also serving as affordable first home for the local buyers 

Pankaj Srivastava, COO of Maitreya Realtors & Construction agrees that there is a symbiotic relation between second homes and affordability since people invest less in second homes compared to first home. According to him, it is the price factor in a city like Mumbai where the first home is quite costly, but then people like to have a second home primarily for the weekend getaway.

“For the middle income group this is all about affordability, but for higher income groups this is not always true as the luxury second homes are equally or more costlier than many of the first homes. The main attractions for such kind of second home are the space – larger homes, open spaces, a swimming pool, a badminton court, a big lawn, gymnasiums and convenience facilities  that offer entertainment and ease of living. These additional features are what differentiate it from the first homes,” says Srivastava.

Diipesh Bhagtani, Executive Director, Jaycee Homes believes that location is the first major attraction in the second home followed by the amenities. He believes the buyer may adjust his budgetary parameters depending on the location of his purchase and the amenities being offered to him with the purchase of the second home, especially if he doesn’t enjoy these facilities with his first home.

“Second homes are all about luxury and some of the most important elements the buyer will be drawn towards include lush greenery, pollution free open spaces, shopping complexes, entertainment hubs, easy transportation access and the presence of basic amenities (if not luxury amenities). Even a super luxury project can be sold as second home. When something appeals to the buyer and if he can afford it, he will definitely invest. So, whether it is a super luxury project or not, it can be sold as a second home; however, the buyer’s decision of investing in a luxury project for a second home depends entirely on his purpose for this second investment. For instance, if the buyer is looking for a vacation home purely for the purpose of leisure, his first choice might be a luxury project,” says Bhagtani.

A believer of second homes in the affordable category, Surabhi Arora, Associate Director -|Research with Colliers International maintains that buying residential property is an attractive income investment for many in an era of a volatile stock market and low return in other popular alternative investments such as gold and mutual funds, as property can fetch rental income and has an upside potential for capital appreciation in the long term.

“When choosing a residential property as first property for self-use, selecting a location often depends on considerations like distance from own work place, children’s school, native place and social amenities. However, for buying a residential property for investment as second home, the decision is generally based purely on appreciation potential,” says Arora.

The debate continues as to whether or not there is a symbiotic relation between the second home and the affordable factor. But what can be vouchsafed is that the price point of the second homes has a co-relation with the location and the amenities. Now whether the second home is also affordable or not depends on the two given factors even though the collective consciousness would like us to believe that since one invests more in the first home hence second home is more or less an affordable option for the buyers at large.

By: Ravi Sinha

What drives holiday home investment?

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Bottom Line: The debate as to whether location matters more to the second home buying decision or the affordability leads to a chicken and egg syndrome.

Second homes, Holiday homes, Weekend homes, Investment homes, Leisure homes, Investment for weekend, India real estate news, Indian realty news, Real estate news India, Indian property market, Track2Media Research, Track2Realty

Weekend Home

There are no clear answers over the debate about location or affordability. Different set of buyers have different concerns and outlook with regard to buying a holiday home.

While the advocates of location as a demand driver argue that if affordability, or the cost conscious mindset, is the critical factor why would one even go for a luxury of availing second home for holidays?

Those who believe affordability is the prime criterion remind that a second home is not necessarily a luxury for holidaying alone but it can also be purchased as an investment with appreciation potential in mind.

While the first school of thought has a firm conviction that if luxury projects are today being sold as holiday homes it shows that price point is not the only factor; others question if affordability and its appreciation potential is not the key determinant how come some of the tourist locations could never blossom as the market for second homes. As a matter of fact, some of the buyers even look to invest in the second home with rental yields in mind. The debate hence continues.

What can be vouchsafed is that it is all about the buyers’ profile that determines the criterion to buy a second home. While the rich and affluent buy it out for sheer luxury and pleasure of holidaying, the mid segment buyers go for it with investment horizon in mind.

Holiday home drivers

Three critical factors of second homes—Location, Affordability & Amenities

Natural surroundings, tourist spots and religious places ideal for second homes

Equally lucrative market for high end and mid segment buyers

Amenities & luxury more important for high end buyers

Affordability a key concern for mid segment buyers

Location equally critical for all second home buyers

The developers active in this space have their own views and concerns to cater to two different extremes of thought process. It seems more market research and strategy is needed in this segment of housing which may appear to be a leisure investment as an outside view.

Diipesh Bhagtani, Executive Director of Jaycee Homes maintains that both the location and affordability matter equally. If a buyer is investing in a second home purely for the sake of monetary investment gains, he might consider affordability over location. But if he is considering a second home as an extension to his living space, he might place his location preference over affordability. It is all about the reason why the buyer is opting for the given property.

“What the first home does not have often lead the buyers to second home. One of the biggest reasons for a buying a second home is the extension of luxury space. Most buyers will look for natural landscapes filled with lush greenery when looking for a vacation home. However, these elements of luxury living need to be complemented with easy access to hospitals, shopping complexes and transportation modes. A frequent business traveller will naturally look for ease of access while shopping for a second home, whereas families may prefer entertainment hubs along with natural open spaces,” says Bhagtani.

Hiral Sheth, Director-Marketing with Sheth Creators is of the opinion that several factors influence the price structure of these second homes. The most important is the location of the project. She reminds that in a city like Mumbai where space is the most important constrain location becomes a prime factor in investing.  Connectivity along with social infrastructure in a prime location is of utmost importance while investing in this segment of real estate.

“Location along with amenities offered plays a major role while choosing a second home. In real estate, amenities are features such as location, outlook or access to a park, lake, highway, view or the like, which enhance the desirability of investment in project that contribute to the pleasure and enjoyment of the occupants. Location and social infrastructure definitely plays an important role in the mindset of the buyers while they are investing in second homes,” says Sheth.

Surabhi Arora, Associate Director – Research with Colliers International, however, maintains that it is difficult to say whether location or affordability matters more in case of second home buying. According to her, one can always choose any promising location and need not pay much heed to personal choices. By promising location, it does not mean the most expensive or the cheapest. It is a location where people would like to live, and that can be for a variety of reasons, like commercial development, location, infrastructure, educational institute and social life.

“Promising locations can always fetch you a good return whether it is rental yield or capital appreciation. Further, if someone is planning to rent out the property, he always thinks about the target tenant and chooses the property accordingly. For example, buying property near a commercial hub make sense as target tenants are generally young professionals who like to live near their workplaces,” says Arora.

Pankaj Srivastava, COO of Maitreya Realtors & Construction feels that many people have disposable income for whom owning a luxury second home is a status symbol. They look up for modern amenities. Locations with scenic beauty and natural surroundings are preferred while investing in them.

“There are various factors which are looked upon while investing in second homes. The basic decision is based on the location and accessibility from the city. The connectivity to the main city, the infrastructure in terms of roads, electricity, water supply, waste management and the facilities provided by the developer, the ease of maintenance and upkeep of the property are all crucial in making a decision,” says Srivastava.

Second home market is a new phenomenon in urban India but has emerged as a sunrise market in cities like Mumbai. With the ever changing trends the demand for holiday homes has varied according to the consumer’s needs and tastes amongst various cities. Hence, there cannot be a one size fits all answer to the dilemma of location or affordability. For many a second home in India is housing which offers opulent living spaces and ultra-modern luxurious amenities; whereas for others it is a safe investment.

With the changing demographics of consumers and younger generation as buyers, developers are also continuously researching over the issue before any new offerings to strategise the sale of their projects. Right from technology to brand association, the developers are positioning the portfolio innovatively as this segment of housing is catering to a wide range of buyers.

By: Ravi Sinha

Lodha launches ‘The Reserve’ at Lodha Belmondo

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News Point: Conceptualized as finest luxury in a river side golf-based development, the project brings together world-renowned partners Greg Norman and Christopher Charles Benninger. 

Lodha Belmondo, Lodha Group, Holiday Homes, Weekend Homes, Luxury Developer of India, Mumbai Real Estate, India Real Estate News, India Property Market News, Track2RealtyExpanding its footprint in the weekend homes offerings, has launched ‘The Reserve’. Set within the 100-acre luxury resort of , on the banks of the Pavana River, The Reserve is an exclusive gated enclave with 28 villas and 6 residential towers, all commanding spectacular golf course views and offering the impeccable hospitality of a private members’ club.

Bringing world-renowned partners for the first time to the region, The Reserve at Lodha Belmondo offers luxurious 3 & 4 bed residences starting 1.6 crore and Sky Duplexes and Golf Villas starting 5.5 crore.

The development is strategically located on the Mumbai-Pune Expressway. A short drive from Lonavala or Pune, and a breezy 2 hour drive from Mumbai, The Reserve is easy to reach, yet reassuringly private and secluded.

Residences at The Reserve, designed by world-renowned architect, Christopher Charles Benninger, offer extravagant views of a 45-acre golf course, 90-acre of lush green open spaces, Pavana River and Sahyadari mountains.

Project Highlights: 

6 luxury towers comprising of 3 & 4 bed residences, sky duplexes and 28 golf villas (2 towers of 3-bed luxe, 2 towers of 4-bed and 2 towers of sky duplexes 

45-acre, 9-Hole golf course designed by Greg Norman 

90 acres of lush green open space on the banks of river Pavana 

A private members’ club with a swimming pool, games room, gym, party lounge, library, 24×7 resident manager on call, Concierge and valet services 

50,000 sq. ft. Country Club managed by Evason – international hospitality group by Six Senses 

Equipped with 10,000 sq. ft. spa, games room, fully equipped gymnasium, a private theatre, restaurant and a party hall 

Multi-purpose courts for sports, a full-sized cricket ground, an organic farm, amphitheatre, helipad and more

The 9-hole golf course designed by the legendary golfer Greg Norman, exceeds global standards, enabling gradations from easy to moderate to challenging, and an opportunity to experience the finest professional equipment and training facilities.

Additionally, the Pavana River, which flows alongside the golf course will have a 1km long riverside promenade and boating facilities.

Speaking about The Reserve, Prashant Bindal, Chief Sales Officer, Lodha Group said, “In alignment with our vision of ‘Building a Better Life’, we are pleased to present ‘The Reserve’ as a perfect antidote to city life. The Reserve is a perfect weekend destination where one can simply come to unwind and recharge, preparing for the coming week. With its differentiated offerings, The Reserve at Lodha Belmondo has given a substantial impetus to demand within Mumbai and Pune. On construction front we are already at an advanced stage with various amenities like The Country Club with a private theatre, swimming pool, games room, fully equipped gymnasium, Juice bar and more are fully operational. We are now working towards completion of the golf course within few weeks along with other lifestyle amenities.”

Speaking about the lifestyle at The Reserve, its brand ambassador Deepika Padukone said “This is a perfect weekend getaway. Away from the hustle and bustle of the city, yet not very far. And there is so much to do here, that it just can’t get monotonous. A game of golf at a 9-hole Greg Norman golf course or quality time with family by the riverside promenade is the perfect way to unwind. I can spend my weekends blissfully here as it perfectly fits my active and busy lifestyle, be it sports or leisure. I recently spent 2 days here and it was an absolute delight. I enjoyed every bit of it. I feel the vision that Lodha has setup with this weekend project will completely change the way people look at their weekends. One can simply get here over the weekend to rejuvenate and get geared up for the coming week.”

For an ultimate private luxury experience, The Reserve offers access to a private member’s club, a 5-star hospitality service with a dedicated 24×7 resident manager, a private helipad and the finest therapies at a world-class spa by Evason by Six Senses.

On account of large open spaces, the air quality in this neighbourhood (AQI of less than 70) is far better than any other city in India (including Mumbai and Pune) and even neighbouring regions, making it almost at par with leading cities like New York and London.

Mark2Market-Tata Myst promises luxury in Himalayas

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Project: Myst – 20 acre, Eco-Luxury Residences

Developer: Tata Housing Development Company

Location: Village Kalth, Near Kasauli, Himachal Pradesh

Price: Rs. 3.5-14 crore

Project execution lifecycle: July 2015- December 2017

Conceptualisation

Tata Myst, Kasauli Property, Shimla Property, Solan Property, Luxury Villa, Second Homes in Himalayas, Holiday Homes, Holiday Destinations, Indian real estate news, India real estate market, India property market, Track2Media Research, Track2RealtyMyst has been conceptualised on the basis of in-depth understanding of both stated and unstated needs of our customers. For the project Tata Housing has conducted Qualitative Research followed by Focus Group amongst a niche audience on the location, theme and project architecture. The design was finalised post integrating the design elements as suggested by the consumers.

Driving force

With an aspiration to delight the homebuyers Tata Housing wished to provide quality life spaces through continuous innovation, and in the process they conceptualised India’s first residential development designed using biophilic architecture. It is an approach that brings residents closer to the pristine nature of the Kasauli Hills, while presenting them with every luxury. This exclusive gated community has been designed by the world’s leading expert in sustainable architecture, Llewelyn Davies Yeang. Located on a high promontory, Myst blends contemporary design seamlessly with the unique ecology of the area.

Drawing board to on-ground

It took Tata Housing around 6-9 months for the project to hit ground after the entire planning process was complete. Tata Housing claims that as a standard operating procedure, they conduct both primary and secondary market research before signing any new project. So, they conducted an in-depth analysis of the demand supply ratio along with the development potential and expected infrastructure development of the project before hitting the ground.

Defining demand

In order to define the demand in this market the company got into concentrated and focused market research to determine consumer needs and then the project was designed and implemented according to those preferences. They claim to have noticed an increasing demand for holiday homes in the Hills of Kasauli and thought that Myst would be a perfect fit blending contemporary design seamlessly with the unique ecology of the area.

Challenges

Landscape design has been a key challenge in order to create a place of high built density for people; those are also rich in wildlife. At least 30% of the area left over after deducting the building footprint from the site area will be soft-scaped. All open parking areas will be planted in the space between parking slots with fast growing varieties such that will provide shade when fully grown. To make the site better for the less common and more threatened native species of plant and animal than it is now, species planted shall be selected from local native species and those capable of resisting drought.

Insights

Tata Housing realised that heat islands is a critical area of concern. Choice of roofing materials and greening of roofs was estimated to reduce heat island effects. Roofing material other than turf therefore has to be selected of high albedo material and high SRI. To avoid or minimize damage to sensitive ecosystems and despoiling of landscapes Tata Housing hence adopted best practice norms for infrastructure construction like planning the services according to the site gradients and then superimposing the Masterplan for effective functioning.

Market feedback

Tata Housing’s Myst has witnessed an overwhelming response from consumers across the country. The developer has already managed to sell more than 50% of the available inventory within the first two years of the launch.  Myst has been conceptualized and designed with the specific purpose of offering a new dimension to luxury living. For this they claim to have employed the practice of pilot testing, comprehensive research of the market and the landscape and then testing the concept before launching the formal project. The property has witnessed an overwhelming responses from Indian buyers as well as the NRI community. Testament to this is the recent online sale of a Rs. 5.5 crore villa at Myst.

Project differentiator

Myst is an exclusive gated community that blends contemporary design seamlessly with the unique ecology of the area. The eco-luxury residences, born from a joint venture between Tata Housing and Impacts Projects, are an organic addition to the magnificent Kasauli Hills — the result of a blissful blend of luxury and splendour, adding a new dimension to the luxe life. Easily accessible, Myst is located on a high promontory — a hill top with gradient — and is a mere 65 kilometres from Chandigarh, the city of Le Corbusier. Surrounded by the lush indigenous foliage of a pine forest, Myst is a way of life — in harmony with natural beauty that is both pleasurable and sustainable.

Investor outlook

As against the general perception of investors buying in luxury second homes, Myst has received an overwhelming response from the end users. Being the only project created on the principles of Biophila, a design ethos to create grand living spaces that are invigorating, inspiring, and comforting with the nature. Biophilic design lessens stress and  enhances  well-being  as  our  minds  and  bodies  gravitate  towards certain configurations and  natural layouts. With flowing water, green roofs, and airy open living spaces, Myst eliminates stark distinctions between built up structures and natural surroundings.

Marketing strategy

Tata Housing has adopted a 360 degree marketing approach for the marketing and since this is one of the most luxurious projects, they had a perfect blend of outdoors at strategic locations, print advertisement with leading dailies and constant burst through the premium online websites. Along with the above mentioned routes they have also invested a considerable amount of money through sponsorships of on-ground events in the micro market and creating a storng reference scheme for our customers.

Hits & misses

Tata Housing has implemented multi-channel sales strategy with a proper mix of brokers, online portals, customer references and company sales team. This has resulted in a positive word of mouth amongst the prospective customers leading to incremental awareness and sales.

Learning

Projects created basis the needs and requirements of the consumers will be in demand irrespective of market conditions.

Launch2Sales ratio

Despite the fact that Myst is a niche project to fulfil the aspirations of a segment that desires luxury living at par with international standards, Tata Housing has sold 50% of its villas and continues to receive an encouraging response.