Never enough: Why Indians have a penchant for second homes

Up to 70% of prospective buyers want a second home within 2 years.

The pandemic caused homebuyers across the world to adopt a wait-and-see approach, but in India, Savills noted that people have an increasing tendency to buy second homes. Aspirational buyers are mulling over alternate and additional home purchases, thanks to value-based investment opportunities in the market.

Savills conducted a survey among prospective buyers in June-July 2021, and almost 70% of respondents said they want to invest in a second home priced at INR 2 cr or less. However, the average purchase consideration for a second home, on account of super luxury destination homes, moves upwards and stands at INR 3 cr.

The survey also sheds light on another absorbing trend: the propensity of potential clientele to make an immediate investment into second homes. 57- 70% of the respondents want to buy a second home within 2 years. This short-term commitment of less than 2 years is evident not only in the domestic market, but also in the preferred offshore destinations. Interestingly, if we compare both international and domestic investment destinations, maximum preference of investments is within India in a horizon of less than 6 months.

“Improved affordability is one the major key demand drivers of second homes. Though the property costs have been rising over a period, so is the affordability due to rising income and lower interest rates. It is believed by the banking industry that the recent times are the best with respect to affordability over the last 25 years,” says Savills.