Vacation homes or Holiday homes have evolved at a brisk rate during the last 3 years. Rise in the preference for Vacation homes is attributed to multiple aspects: improved connectivity, growth in domestic tourism, growing target audience, flexibility to work from anywhere, technology, transparency, and returns on investment. Vacation home products have evolved significantly in terms of the product design and services offered.
Vacation homes or holiday homes have a huge potential in a country like India which is a home to significant HNIs and UHNIs. With operators also offering fractional sale model, the product is becoming accessible to a larger target audience. Vacation home as a product has evolved from being just a lifestyle product to an investment product. The entry of organized operators in this space has led to product differentiation, improved operations, and the ease to rent out the property on short term rent.
Tourist destinations at beach locations or hill stations with direct air connectivity (up to 3-hour driving distance) with a potential to earn short term rents from the property are preferred. In India, 7 regions namely Goa, Alibaug, Lonavala, Shimla – Kasauli, Rishikesh – Dehradun, Ooty – Coonoor and Malnad belt are among the preferred regions for vacation homes. This report includes demand assessment, competition, and benchmarking analysis in the identified 7 regions. It is further supported by a consumer preference study to understand the requirements of the target audience in terms of the product design, pricing, unit amenities and other factors.
This handbook will help different stakeholders - developers, property owners, investors, and operators to provide insights and 360-degree guide during development planning, prevalent business models, investment decision and setting up Vacation Homes or Holiday homes project in India.
This book is a must read to understand the Vacation Home product in Inda in detail. It covers:
- Formats of second homes in India and definition of a vacation home
- Market size, target segment, latent demand, and annual growth
- Consumer preference survey indicating the preferences of the HNIs and UHNIs while investing in a vacation home product
- Competition Analysis across the identified 7 regions – supply, overhang, key projects, pricing, and product features
- Benchmarking Analysis covering ticket size, net rental yield, capital value appreciation, spatial design, technology features adopted, operations of the property and project amenities.
- Best practices that can be adopted in PropTech and ESG and thereby improve the operational efficiency
- Ownership and Operating Models
- Development cost and timeline
- Financial and Profitability Analysis
This handbook has been thoroughly researched and referenced, with relevant information collected through interviews with architects, operators, developers, investors, owners, and statutory authorities, along with our own proprietary research.