By Dr. SACHIN CHOPDA
The year 2023 witnessed a noticeable surge in people choosing to invest in holiday homes in India. This has come about due to several factors, with the most significant being the increasing aspirations for an enhanced lifestyle. This can be seen in Mumbai where people are showing interest in purchasing holiday homes in locations such as Alibaug and Karjat due to close proximity to the city.
The attractiveness of investing in holiday homes has been on the rise due to a combination of factors. Firstly, there has been an increase in income levels among home buyers. Additionally, there’s a growing desire among people to indulge in short weekend getaways. These factors collectively contribute to making the prospect of investing in holiday homes a compelling option. One of the appealing aspects of investing in this asset class is the potential for generating attractive and regular monthly income without any maintenance costs.
The attractiveness of these locations has been bolstered by major ongoing infrastructure projects like the Mumbai Trans Harbour Link (MTHL) and the Navi Mumbai International Airport. These infra projects have contributed significantly by enhancing accessibility to these areas and concurrently reducing travel time. As a result, they have become more appealing options for individuals seeking holiday home investments, providing convenience and a potential increase in value due to improved connectivity and infrastructure development.
Outlook for 2024
We believe that the year 2024 will see heightened interest in the holiday home segment as the benefits accrued by investing in this segment of real estate, becomes even more apparent to home buyers and investors alike. As people recognize the potential for regular income generation, and the appeal of having a weekend getaway spot, the attractiveness of holiday homes as an investment option, is likely to continue in the coming year. (The author is Managing Director, Pushpam Group).