ALYF is a tech-enabled fractional ownership platform that makes holiday home ownership accessible & hassle-free through its smart ownership model. Currently having 9 projects in locations such as Goa, Lonavala and Alibaug, it has plans to expand to international destinations by the middle of next year. And over the next 12 months, its goal is to have over 100 holiday homes in its portfolio.

“The surge in vacation rentals has subsequently led to an increased demand for the supply of holiday homes. Given the current growth rate and the incorporation of fractional ownership within the industry, we anticipate that by 2026, the market could reach a market size ranging from $10 to $12 billion,” says Saurabh Vohara, Founder & CEO at ALYF.

In an exclusive interview with Sanjeev Sinha, Mr Vohara talks about the reasons behind the exponential growth in holiday homes in India, current trends in the segment, ALYF’s growth model and shares his business outlook. Excerpts:

As per a research report by 360 Realtors, India’s retirement and second home (RSH) villa market is currently growing at a CAGR of 23.63% and is set to reach a market size of over $4 billion by 2026. Taking other complementary verticals such as vacation villas and serviced apartments into account, the aggregate size is even bigger. What, in your opinion, is driving this kind of growth in this segment?

The substantial growth of this market can be attributed to various factors, with a significant driver being the consistent increase in vacation rentals, as revealed by recent data published by Airbnb, showing a remarkable year-on-year growth of 100%. This surge in vacation rentals has subsequently led to an increased demand for the supply of holiday homes. Given the current growth rate and the incorporation of fractional ownership within the industry, we anticipate that by 2026, the market could reach a market size ranging from $10 to $12 billion. This represents a significant three-fold increase in size, as platforms like ALYF are making these assets commercially accessible and hassle-free for individuals with their efficient property management and maintenance service. Other factors of growth also include the changing lifestyle preferences, rise in disposable income, the need for stress relief from urbanisation, government initiatives promoting infrastructure development, and the profound impact of the pandemic.

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What are the latest trends in the holiday homes segment in India? How do they compare with those prevailing in developed nations?

The latest trends in India’s holiday home segment reflect a global shift towards fractional ownership, eco-friendly designs, smart technology integration, and experiential travel. While these trends are similar to those in developed nations, India’s unique culture, landscapes, and evolving customer preferences add a distinctive local flavour to these developments. People no longer look for just 5-star Hotels and Resorts, they want a memorable vacation and an immersive experience as a whole, which we as ALYF aim to offer along with our homes. Another notable trend in the Indian holiday home industry is the contrast in preferences between Western holiday home owners, who often prefer a do-it-yourself approach, and Indian holiday home owners, who generally seek comprehensive end-to-end management services. Recognizing this distinction, ALYF has adopted the approach of becoming the singular, all-in-one solution for comprehensive holiday home ownership.

Where do people prefer to own holiday and vacation homes in India? Which are the major destinations and why?

The demand for Goa prevails. Goa’s unique charm ensures its place as the top pick for holiday homes in India, where it’s not merely an address but a guarantee of a distinctive experience, that caters to all kinds of people. There is also a growing demand for holiday homes in micro localities near major cities such as Mumbai, Delhi, Bangalore, and more, where these areas offer quick accessibility and an immediate sense of escape. These sought-after micro localities include Alibaug, Coorg, Shimla, Lonavala, and Karjat, among others. These destinations are experiencing increased momentum, thanks to ongoing infrastructure development, resulting in significant capital appreciation and improved overall return on investment (ROI).

There are many players present in this segment at this moment. How do your projects differ from theirs and what is their USP?

ALYF stands out in this competitive segment through a combination of unique features and a customer-centric approach. Firstly, we prioritize providing an immersive holiday experience by promoting local excursions and tourism, allowing our guests to truly enjoy the essence of the location. What distinguishes us is our ability to cater to two distinct preferences prevalent in India’s holiday home market. ALYF offers two distinct models, one geared towards self-consumption, where homeowners can personally enjoy quality time with family and friends, and another tailored for individuals looking for lucrative rental returns. What’s particularly appealing is that in both models, customers enjoy ownership and the benefits of capital appreciation from their asset through ALYF, ensuring a win-win scenario no matter their choice. This dual approach uniquely positions us at the forefront of the industry, setting us apart from competitors.

Owning a second or vacation home has become most people’s dream, particularly post-pandemic. However, while buying one eats into a sizeable portion of one’s savings, their maintenance is also not easy. What is your strategy for overcoming these challenges?

The challenges highlighted here are precisely what we aim to address at ALYF. We’ve observed that most people typically utilize their holiday homes for just 20-30 days a year, making the significant upfront investment from their hard-earned savings seem less attractive. ALYF offers a solution by enabling individuals to own, enjoy, and generate income from a holiday home at just 1/10th of the traditional cost, starting at just Rs 10 lakhs. What’s more, ALYF takes on the responsibility of managing and maintaining the property, eliminating maintenance costs and outflows for our homeowners, who we refer to as “smart owners.” Thanks to these offerings, we’ve witnessed many individuals making their inaugural real estate investments through ALYF, as our platform empowers them to invest modestly and intelligently. In the future, we plan to introduce additional projects and product offerings that further encourage first-time investors to embark on their ownership journey with ALYF.

What is your business and growth model?

Our business and growth model at ALYF is centered on a strategic approach to meet the increasing demand for holiday homes. We’ve primarily concentrated on Goa, a highly sought-after destination, and continue to expand our presence in this thriving market. Furthermore, we are actively working on the development and curation of holiday homes in locations near major cities such as Mumbai in the west, Bangalore in the south, and Delhi NCR in the north. Looking ahead, our vision extends globally, with plans to expand to international destinations by the middle of next year. Over the next 12 months, our goal is to have over 100 holiday homes in our portfolio, with an estimated value of Rs 200 to 250 crores in this growth endeavor.

How do you see the future of holiday homes in India?

The future of holiday homes in India holds tremendous promise, with vast potential yet to be realized. Currently, the market is at its nascent stage, and we’ve barely scratched the surface in terms of its potential. To put this into perspective, in a country with approximately 292 million families, only around 2 lakh own holiday homes, which is less than 0.07% of the population. Our model, at ALYF, is designed to address this gap by making real estate assets like holiday homes accessible to a broader segment of the population, all while providing an avenue for earning rental income without the burdens of property management. As we move forward, we anticipate more and more people becoming holiday home owners, thereby increasing the supply to meet the growing demand, especially from the millennial demographic. India boasts a young population, and in the coming years, we expect to witness a generation that places a significant emphasis on lifestyle and aspires for a high-quality life. This aspirational mindset directly contributes to the growth and evolution of the holiday home sector in India.

Can you also share details about any fitness and wellness amenities or initiatives integrated into your holiday home projects to cater to the health-conscious preferences of potential buyers?

In response to your question about wellness amenities in our holiday home projects, we’re excited to share that at ALYF, we prioritize holistic well-being and aim to provide an even broader range of amenities and wellness initiatives, ensuring a comprehensive and holistic holiday home experience for our customers. We are happy to share that our recent collaboration with the iconic tennis star, Sania Mirza, represents an exciting step forward in our commitment to promoting a healthy and active lifestyle within the holiday home ownership experience. In line with this partnership, we plan to introduce features such as on-demand yoga sessions and meditation workshops, ensuring individuals can focus on their physical and mental well-being amidst the serene and tranquil environments of our holiday homes. Additionally, we will offer farm-to-table dining options, recreational facilities, and select locations with pristine natural surroundings and excellent air quality, thus providing a comprehensive wellness experience for our customers.

Sania Mirza, a firm believer in the positive impact of owning a holiday home on one’s family and health, as well as the value of real estate, has joined us in our mission. Collaborating with her to promote the idea that this luxurious asset is now within reach for everyone is incredibly exciting. Together, we have ambitious plans to embark on projects in sought-after destinations like Goa, Coorg, and Alibaug, making holiday home ownership more accessible and appealing to a wider audience.