Upcoming Second Homes in India

Magicbricks.com moderator says:
Recently the property market in India has greatly evolved. As a result, several trends are emerging as per the property demands and needs. For the past few years, India is facing a boom in the upcoming trend of second homes. Today, more and more people want to invest their hard earned money in property related matters. Thus, these kinds of people tend to explore all kinds of markets. This is the reason that now-a-days India has become the top priority among people to invest in properties. Moreover, the emerging concept of second homes is a kind of investment and is generally, famous at places which are away from the bustling crowds and far away from the city noise.  This form of owning a second home in India is no more restricted to wealthy people.

It has become a top priority, especially for who really want to invest in some kind of property dealings. With this changing scenario, the real estate industry in India is flourishing. This upcoming trend in India has also made middle and upper middle level people start investing in it through more feasible options. Many new schemes have been evolved for them, so that can easily figure out their property investment plans. In today’s changing scenario, those who are planning to purchase second homes are crating another investment option for them, whereas, those who own a beach house or a farm house of their own are enjoying that status symbol of living a luxurious life. Moreover, if we talk about the pricing structure of this trend, then the prices are getting higher and higher at few specific locations. As people generally, owe second home from the investment point of view, in this case the location of your second home matters a lot.

If we talk about India, then the concept of buying second homes is booming up at places like Goa, Alibagh, Pune, Khandala etc. Moreover, there are people who love to buy second home in locations such as Shimla, Manali, and Dehradun etc. In this current scenario the ratio of demand and supply is highly applicable to the real estate industry in India because of the increasing demand of the second homes. Thus, to match up with this fast pace, many builders are coming up with multiple real estate projects at places away from the city crowds. This concept has also enhanced the levels of regional economies as people are investing their money in integrated luxury housing complexes. Moreover, it is likely said that the demand of these kinds of second homes will increase in coming years and builders are coming up with great deals along with many special offers to further attract buyers.

Best Second Home Spots:

India is experiencing a new real estate layout in terms of second and luxurious homes. The real estate majors such as DLF, Ansal’s have already created some of the master projects, which have changed the entire infrastructure. Some of the luxurious projects by these trusted majors are on the verge of completion. As far as the famous hotspots in India for second homes are concerned, Kerala is acquiring the top position. As this place is famous for best holidays, the investment for second homes is flowing to the remote and safe areas of the state. The major attraction to buy a second home at this place is the surrounding greenery, providing a peaceful and a calm atmosphere, away from the bustling city life. Generally, people those who want to invest in their second home in Kerala are either from North India or Bangalore. According to the studies, Kerala is the most preferred location in India.

Mumbai – Another Preferred Location:

Another well preferred location for people investing in second homes in India is Mumbai. The second home concept in Mumbai has recently started with the growth of real industry spreading to nearby locations including Pune, Lonavala, and surrounding areas. Today, the property prices are soaring high in Mumbai and Delhi. According to the recent studies there has been at least 15 to 20% growth in the property market. It greatly contributes in development of the overall real estate industry. This budding concept of second homes especially in India is due to the phenomenal opportunities that India offers to all the investors. People from all walks of life are venturing to invest in this matter and it is no more only the game of entrepreneurs.  Moreover, the study shows that the age bracket of those investing in these kinds of projects is usually 35 to 45 years. Thus, we are looking at the fact that both the middle income as well as the higher income groups are venturing in this property zone.

The basic thinking of people has changed in respect to property related issues. As far as the concept of second home is emerging, people buy such properties so that they rent out that property. Opening a resort is a good way to fetch good returns for their investment. Some people sell off their properties at much higher rates that what they purchased for in order to earn huge amount of money. One more reason for people getting interested in buying second homes is that the banks and other financial institutions have diligently crafted various convenient policies and schemes. Moreover, the interest rates are regularly being revised upwards. With rising stocks people prefer to invest in second homes in and around metros. This is because people have started realizing the potential of real estate industry in India and moreover, they have started realizing the investment potential.

Price Range of Second Homes:

If we talk about the price range of these second homes, then the actual cost of these properties costs anything between 15 lakhs and the figure goes up to crores. Even after calculating this kind of huge amount of money, the demand of these kinds of properties is soaring high. Hence, developers are coming up with many latest projects to cater to this increasing demand.

Points to Ponder:

What are the other areas worth investing for second homes? Do you think this concept will emerge as successful 15 or 20 years down the line? Some people might think that given that cities are ever expanding, soon the homes in outskirts would be a part of cities. In such scenarios, what sort of investment options should be wise?

Why people should invest in Indian Real Estate market?

Magicbricks.com moderator says:
Real Estate is spreading its branches in every direction, and lately the market trends have touched new heights. This kind of exponential growth has boosted the real estate market in India as well. There is a rise in the entire industrial, commercial and residential projects thus; multiplying the number of foreign investors.

As per the current real estate market trends, during the first half of the year 2005-2006, India has attracted more than three times foreign investors as of those in the US. Today, it has become the budding sector for all investment lovers. Moreover, this has turned into a possible venture, by the initiative and positive outlook of the Indian government.

Why people should invest in Indian Real Estate market?
This seems a big question mark in front of every property investor, who wanted to invest their hard earned money into it.
The most promising and the key factor for this is that, India has released some relaxed Foreign Direct Investment (FDI) rules. On the basis of which, many foreign investors have decided to create India as their new property investment land.
It has even encouraged several financial and private firms to catch hold of this ultimate opportunity to make property investments targeting the Indian Real Estate Sector.
Foreign investors can now invest in integrated townships by two means. It can be done either, through a wholly owned subsidiary or through a local partner in India. However, in the later case, it will be a joint venture between both of them.
Lot of changes has been incorporated in the investment policies.

The entire spectrum of this real estate industry in India has been created for all property buyers-sellers in order to gain maximized profits. Moreover, it has become the second largest employing sector in India. In the past few years, the Indian real estate market has witnessed a revolution. As per the emerging trends in this sector, the industry is estimated to grow at the rate of 30 percent annually over the next decade.

Demand of commercial and Residential Properties:
The rapid growth of Indian economy has had a gushing effect on both commercial as well as residential property demands. More and more commercial property is required to meet the modern business needs. Moreover, the growth in this sector, especially the commercial one is led by the outsourcing and the Information Technology (IT) industry in India. These industries acquire approximately 70percent of the property market. In the coming years IT sector is likely to grow about 35 to 40percent. If we talk about their evaluation, then commercial sector is rated as per their location, commercial viability and of course the infrastructure. These days the hot commercial property markets are in Bangalore, Mumbai, Delhi, Gurgaon and Hyderabad.

As far as the residential property matters are concerned, the Indian market constitutes approximately 80percent of the Indian real estate market and is growing rapidly. In the last two years the growth of residential sector is grown about 15 to 20 percent. Thus; as India is emerging as a common grounds for property related matters, the developers are coming up with some world class buildings including the design and architecture to attract more and more foreign and local property investors. This step proves to be significant when it is the matter current real estate as it has given new dimensions to this industry that can now be compared with the international standards.

Leading India Real Estate:   
This is a significant component of the Indian real estate market as the growing trends have boosted the property sector. Some of the vital and leading real estate funds are:
• HDFC property Fund
• India Advantage Fund (ICICI)
• Kotak Mahindra Realty Fund
• DHFL Venture Capital Fund

Steps to be taken care of before investing in any property:
These are some of the very basic steps that everyone associated with the real estate industry should know.
• The value of commercial property depends upon the businesses around it and the growth of those businesses. However, the value of residential property depends upon the location and the amenities the apartment or flat is providing you.
• Secondly, you should be well aware of the cost of arranging funds in order to manage your property.
• Last, but not the least, you have to deal with the recurring expenses, which include maintenance etc.

I’m sure there are tips other than those mentioned here. Do share them for the benefit of all real estate enthusiasts!