Why do you need a weekend home?
Updated: Jan 25
Vacation homes – An emerging real estate investment in India
Weekend home has become one of the emerging investments in Real Estate. It is considered as vacation home or second home as you buy it with sole intent of relaxation. People prefer to buy weekend homes in calm places for solace. They want to move away from the hustle clamor of the city life in weekends.
Urban Indian’s quest for buying weekend homes is increasing as they are investing it as a leisure property. It is the home that people consider as relaxation spot which eventually serve as a blissful retreat at retirement age. Weekend homes are usually situated amidst greener embracing the environments like Himalayas, religious destinations or beach localities. The locations for such homes are nearby with 6-7 hours of drive by car or train from the primary residence. The features people look for weekend homes are connectivity, serene environment, and developed infrastructure.
Rising trends of weekend home:
The trend in ‘weekend home’ has shown drastic changes in the mindset of the millennial. Indians have always inclined towards buying second home however; people shifted their focus which will offer personal value like vacation home from which they can earn too. Weekend home additionally offer the alternative of leasing the property and earning income from the tourism potential of the investment destination. Homestays during excursions has become a lucrative market, today.
The primary reasons for expansion of weekend homes or holiday homes are the development of Indian economy, High Net-worth Individuals and the growing aspirational middle class.
Weekend homes are also considered as ‘summer homes’, currently an oasis of market activity in India's residential real estate sector. Millennial now invest in homes at early stage of their career and eventually look for investing in second home. For instance, the dream of Indians has gone through a considerable change in the most recent couple of years. House and car were status of lower income group, but presently it’s the vogue to purchase a second home i.e., a weekend home. These are the cottage houses on the outskirts in the midst of the greens.
Developers have sensed this trend and are aiming to develop sustainable environment buildings in outskirts with all basic amenities including connectivity. A Home away from Home concept is a trend in the realty segment. Developers have observed that not only the NRIs but city-dwellers and people across the state are showing interest in weekend homes. People living in fast-moving cities and metros like Ahmedabad, Vadodara, Rajkot, Bangalore, Hyderabad, Andhra Pradesh and Pune are positive about weekend homes which are often far from the city life, environmental pollution and other incessant nuisance. These homes help a person to relax and de-stress from the hustle and bustle of the daily life.
Things to consider before buying a holiday home, if you are planning to rent it out as well
The Indian mindset has changed and people prefer to stay in homestays rather than amazing hotel and resorts.
Points to consider while investing in weekend homes:
Affordable pricing to rent it out and the lifestyle quotient, play important roles, when searching for a weekend home
Your ‘weekend home’ should have incredible level of facilities including fully equipped kitchen and laundry facilities, open space for wood-fire and internet access.
You should look for innovative ideas that provide affordability, return on investments and also allow one to enjoy holidays at their own homes
Your vacation property may not give you high return initially. Hence, you should not invest your retirement funds
Your vacation property investment should not be the burden for your savings, other lifestyle and family expenses
Location should be accessible and easy to locate. The property should be spacious, greenery with serene environment
You might have to skip your celebrations at weekend home if it clashes with your tenant’s visit
Weekend Homes is a mixed sector of real estate and hospitality which will offer an investment to the people. It has made individuals aware of the significance of having a property and maintaining it. The increasing demand for space and luxury has made the getaway home industry successful. This trend will ensure success in the future. Since luxurious lifestyle is the main indicator of wealth in the country, weekend homes have a brilliant future. The market will develop and attract more investors in the future. As a buyer, you are advised to examine your financial abilities and then invest.