As India’s primary housing market cools down, the second-home segment is gaining momentum. With rising property prices, investor interest, and evolving lifestyle trends, affluent buyers and investors are increasingly turning to vacation homes, suburban retreats, and rental properties.
Key Drivers of the Second-Home Market Boom
Rising Property Prices in Metro Cities
According to Dhruv Agarwala, CEO of Housing.com & PropTiger.com, property prices have surged beyond affordability. In Q4 2024, housing sales in India’s top eight cities dropped by 26% year-on-year, indicating that many homebuyers are priced out. This has led investors to look beyond metro areas, fueling demand for second homes in suburban and holiday destinations.
Market Correction and Investment Potential
Agarwala adds that a market correction has already started, stabilising prices and making second-home investments more desirable. Investors view such properties as a chance for capital appreciation and rental yields, prompting investors to explore vacation homes and rental properties in Goa, Alibaug, Lonavala, Dehradun, Nainital, Shimla, Coorg, Ooty, Kasauli, Mussoorie, Panchgani, and Mahabaleshwar.
Preference for Leisure and Wellness Homes
With high stress in urban areas, affluent buyers are investing in wellness retreats, vacation homes, and countryside villas. These properties serve as both weekend getaways and long-term investment assets.
Rising Demand for Short-Term Rentals
Real estate professionals point to the increase in short-term rentals, in which second homes earn money on websites such as Airbnb and vacation rentals. The trend is particularly robust in areas close to metro cities and vacation spots.
Future Outlook: A Strong Year for Second Homes
Real estate professionals point to the increase in short-term rentals, in which second homes earn money on websites such as Airbnb and vacation rentals. The trend is particularly robust in areas close to metro cities and vacation spots.
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