The new leisure class

According to the World Travel and Tourism Council (WTTC), India is expected to be the third fastest growing country in the world over the next ten years, as far as travel and tourism demand is concerned. That growth potential, coupled with the 19.8% increase in the number of Indians living in India with financial assets of more than US$1 million, (compared to the 6.5% growth worldwide) are important factors in promoting the growth of leisure real estate in India. Leisure real estate means planning mixed-use development and fractional ownership to boost tourism in India.

Leisure real estate also entails owning a second home, which many Indians are going in for today after satisfying their need for a first home. The demand for a second home is more in tourist destinations like Goa, Uttarakhand and Himachal. Says Radhika Shastry, Managing Director ? Indian Subcontinent, Group RCI, ?With land bank choking in mega cities and people already having fulfilled their requirement of owning a home, the next step is to look for a second home. This comes under the purview of leisure real estate, which also encompasses timeshare/fractional ownership.?

As far as the scope of this field goes, Arindam Kumar, general manager, Marketing & Retail Sales, Mapsko Builders Pvt Ltd says, ?The scope for leisure real estate is very good. People want to enjoy their leisure time and for that they want a few good options. Nowadays, with the growing economy, the income status of the people is growing, leading to a change in tastes and wants.The demand for resorts, amusement parks etc. is soaring in the market.?

Adds Kaushik Sengupta, VP-Sales & Marketing, Eros Group, ?The scope of leisure real estate is immense in India. With stress levels at their peak both at work and home, people are looking for weekend getaways such as resorts, water parks, spas, nature cure centers eating joints etc. Moreover they are also looking for a home away from home which can be a private home, a farmhouse or a cottage on the outskirts of the city or in the hills.? Says PK Sanyal, President, OSB Group, ?Growth prospects of this segment are really good. With customer preferences changing, everyone needs a different option. Therefore, developers have to invest seeing the rise in demand.?

In fact, property experts opine that this segment will be a key driver of real estate in the country in the coming years. Says KP Singh, DGM-Marketing, Pearls Infrastructure Projects Ltd., ?Seeing the current development in the residential, commercial and retail real estate industry, the need for growth for leisure real estate has risen and the increasing demand is leading to its growth. The scope has arisen due to larger disposable incomes, a growing economy and a changing and diversified lifestyle.?

Adds Prem Adip Rishi, Chairman & Managing Director, MVL- Real Estate division, ?One of the key drivers of leisure real estate will be tourism. India is expected to be the third fastest growing country in the world in travel and tourism demand over the next ten years. That growth, coupled with the 19.8% increase in the number of Indians living in India with financial assets of over $1 trillion, are important factors to promote the growth of leisure real estate here. Hectic lifestyle is leading people to splurge on leisure activities to be able to unwind in the short respite time that they get. Companies have also substantially increased their spent on employee delight initiatives.?

In fact, Indian tourism is expected to grow at the rate of 20-25% per annum till 2017, posing a huge opportunity for wealth creation in our country. This makes leisure real estate a good investment option for developers. Says Kenneth May, Chairman and CEO, Group RCI, ?India is poised for growth in leisure real estate and is at the helm of an explosive economic growth in tourism. The market for leisure real estate today is expected to gain further momentum over the next few years. With growing disposable incomes and consumer aspirations and the enormous tourism potential in India, the time could not be better for the industry to launch new leisure real estate models that will meet the needs of the evolving consumer.?

Amitabh Kant, Principal Secretary (Industries and Commerce), Government of Kerala and former Joint Secretary, Ministry of Tourism recently said at a ?Leisure Real Estate Symposium? held in the Capital, ?With the growing purchasing power of Indians, holidays are evolving into experiential and aspirational experiences for the affluent traveller. Through the Incredible India Campaign, we are focussing on opening up newer destinations and new experiences like rural tourism and medical tourism for both the inbound domestic and international traveler.?

A number of small and upcoming builders have already announced projects in places like Haridwar, Rishikesh, Ramgarh, Vrindavan, Solan, Shimla etc. with bigger developers too getting ready to foray into these areas. Says Sengupta, ?Getting into such avenues will be a very lucrative investment option as the target audience for such projects will be middle income group couples and their families. With both members of the family working, the disposable income available with them for such investment is higher and hence they can invest in such options.?