Prominent names like New Delhi-based Eldeco, and Mumbai ones like Sunteck Realty, Rustomjee and Shree Naman group have taken a plunge into the segment while DLF, Tata Realty & Infrastructure, and Isprava are some of the established names.
Eldeco plans to launch a second homes project in Kasauli, Himachal Pradesh and in Rishikesh, Uttarakhand in the second half of 2022. The Kasauli project will have 100 villas built over 35 acres with each incurring a cost between Rs 3.5 crore and Rs 8 crore while the Rishikesh project will have 60 villas at Rs 2 crore to Rs 3 crore each.
"There was big demand from our existing customers for villas. Two-bedroom home owners are upgrading to three-bedroom ones while three-bedroom owners are looking to have villas since many can work from home," Pankaj Bajaj, chairman and managing director, Eldeco said.
Rustomjee is also exploring the segment seriously. "Places around major cities hold good promise for this segment but the product should be a good one. We are in advanced stages to launch a project near Mumbai, around July. If it works, we can launch projects in other places also," chairman Boman Irani, said.
Mumbai’s Shree Naman group, meanwhile, is looking to launch a second homes project in Pavna. near Lonavala in Maharashtra. The plan is to develop the project in six phases with the first one expected to be launched in April and will have 15 bungalows, said Maniti Shah, director, hospitality, of the group.
Last October, Sunteck Realty said it acquired 110 acres on Pen-Khopoli road, near Mumbai, to launch a second homes project but it is yet to start.
Anuj Puri, chairman, Anarock Property Consultants, said with WFH continuing, second home concept is here to stay. "The trend is likely to continue. The pandemic left a deeper impression on urban homeowners who reconsidered their housing options. The hope of owning a second home within salubrious, green surroundings became a part of the overall Indian ethos and hence, the outlook for the second home market looks bright. This in turn prompted developers to cash-in on the growing demand," Puri said.
As per Anarock consumer survey, at least 41 per cent respondents preferred to buy a second home for self-use. Moreover, if given a choice, 53 per cent of these respondents would prefer to buy a second property in the hills, followed by 26 per cent in and around the city of residence while 21 per cent want to move to the coastal areas.
On an average, the price difference in land could range from 25-50 per cent between the top cities and the major hill stations / beach destinations. However, in terms of the overall construction cost, the price difference, if not less, could only be higher by 10-20 per cent.
According to Puri, various factors are responsible for this. “For instance, the construction cost of buildings on the hills are understandably higher. Such structures need proper reinforcement, stronger and larger foundations. Also, the transport cost for raw material can be higher in the hills. Likewise, for beach-front properties, the material used must withstand heavy moisture and rain, floods etc. since construction is in proximity to the shoreline. Therefore, to say that second homes could be cheaper is not necessarily true," Puri pointed out.
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