Vacation hotspots luring buyers in Chennai
Several affluent Indians including Chennaiites with remote-work-conducive jobs are gradually getting attracted to second homes away from their primary residences, to relax and recover from the tumultuous times brought on by the pandemic and other market disruptions. They are seeking homes away from inner city pressures and to own a part of the overall vacation property pie. As a result, demand for second or vacation homes has accelerated like never before across top cities.
Anarock’s latest consumer survey also highlights this growing trend. At least 41% property seekers are now mulling to buy a second home for self-use. Interestingly, if given a choice, 53% respondents would prefer to buy a second property up in the mountains, followed by 26% in and around the same city of residence. At least 21% want to move to the coastal areas.
Chennai also saw a growing demand for second homes or holiday homes as one may call it. Beachfront properties became a major draw for many. In fact, both the affluent and the middle class buyers, least affected by the pandemic, saw it an ideal alternative to their current residence. It became more of a home away from home in order to beat the COVID-19 blues and yet be in a safe and secure environment. Not just the beach properties in and around Chennai, but demand for vacation homes up in the mountains within the state also went up. For instance, Ooty and Kodaikanal are a major draw.
Preferred holiday homes destinations
Near Chennai, major second home or holiday homes hotspots include Mahabalipuram and Kovalam Main Road on ECR with beach-front properties. Average prices in the former location are Rs 4,000 - 7,000 per sqft while in the latter they range between Rs 5,000 and Rs 7,500 per sqft.
Meanwhile, Ooty and Kodaikanal are other two favourite emerging holiday destinations for many discerning buyers. The average capital values at Ooty are anywhere between Rs 3,800 and 6,500 per sqft while at Kodaikanal it is between Rs 5,000 and 12,000 per sqft.
What makes these areas ideal for holiday home investments is that these vacation hotspots are located within the salubrious and green surroundings. They offer a perfect environment for people to live and work and thus beat the COVID-19 blues. Moreover, when not using for self, these homes can also be rented out as homestays through options including Air BnB. As seen, homestays became the first choice for many people post the pandemic as it gave a sense of security and safety amidst prevailing social distancing norms. Till date, many professionals with continued workfrom-home options flock to nearby vacation hotspots and rent a house for a week or more and live and work from there. This trend is still quite popular and will continue in the times to come. Thus, vacation homes are emerging to be a viable investment option.
Advice to homebuyers buying a vacation home
One of the most important aspects to consider before buying vacation homes is its maintenance. Given that buyers will use it only temporarily it is imperative that there is someone to take care of the property. For this, it is advisable that buyers buy a property from a large developer because many developers saw the pandemic as a lucrative time to launch projects in many preferred vacation destinations. Not only are they taking up the task to maintain the property when not in use but also luring buyers by helping to rent it out, that would help people also earn some extra buck.
(The author is city Head, Anarock Group, Chennai)