Retirement villas and the second home segment in India are set for a monumental shift. Once a relatively small market and unorganized category, the market is now moving at a scorching pace, even outpacing conventional real estate in terms of growth, says Ankit Kansal, MD, Axon Developers.
In an exclusive interview with Sanjeev Sinha, Mr Kansal talks about the second and retirement home market in India and shares his business outlook. Excerpts:
What is the current size of the second home market in India and how do you think it will grow?
Retirement villas and the second home segment in India are set for a monumental shift. Once a relatively small market and unorganized category, the market is now moving at a scorching pace, even outpacing conventional real estate in terms of growth. With big and large developers entering the space, the segment is also evolving fast.
As per our market research, the overall market size of second homes and retirement villas was USD 1.394 billion in 2021 and is set to cross USD 4 billion by 2026. If we also consider other complementary verticals such as farmhouses, vacation villas, and serviced apartments, the aggregate size is even bigger. The industry is growing at a CAGR of 23.6% and is set to further accelerate in future.
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What are the prominent markets in India which are emerging as hotbeds of second and retirement homes?
The second & retirement home in India is a vast market that is diverse, nuanced and varies greatly from one place to another. The segment is standing at a crossroads with multiple emergent trends. There is strong momentum in the north to own a cottage or a villa in the Himalayas. While foothills near the Ganges and Northeast are always popular, new destinations are flourishing at higher altitudes such as Badrinath highway, Chamba, and Tehri. Other favourites such as Shimla, Mussoorie, and Rishikesh also look promising.
Goa is an all-year-long popular destination. Meanwhile, after the opening of the MOPA airport, the coastal and inland regions of adjacent Maharashtra and North of Goa, including Sindhudurg, are receiving a buying boost. Property in Sindhudurg is moving northward at a rate of 25-30% yearly as the MOPA international airport is infusing concrete profitability in the property business.
Similar to Goa and Sindhudurg, the hill stations on the Sahyadri ranges, including Mahabaleshwar, Lokhandwala and Panchgani, hold great potential. The verdant landscapes, spellbinding hilly terrains & valleys, and a slew of popular vantage points make it the favorite destination for buyers from Mumbai and Pune. In Mumbai’s peripheries natural beauties such as Karjat, Badlapur, Alibaug, and Panvel are also aggressively climbing the charts. Other popular tourist destinations such as Rajasthan and Backwaters in Kerala hold great potential.
What is the framework that a buyer or investor should keep in mind before investing in second homes in India?
There is no predetermined framework to buy a second home in India. The specifics vary. However, the purchase is generally double purposed – to use it for personal reasons as well as to earn a rental income when not in use. Hence, one needs to carefully look into a few things before buying a second home such as accessibility of the location, safety, security, and social infra. Likewise, look into the nearby views, overall scenic beauty, and the weather. Meanwhile, it is also important to understand the future appreciation and rental potential. This will rely on a host of factors such as infrastructure growth, tourism inflow, availability of airport or railway station in the vicinity, connectivity with major metros, presence of national & state highways.
How do you think India’s growing wellness market is benefiting second-home properties in India?
India’s spiraling growth in the farmhouses and the second home market is also linked with the upcycle in wellness and lifestyle tourism. The wellness segment in India is now growing at a CAGR of ~30% as per GOI data and is slated to reach USD 130-140 billion by 2030.
Alternate healing and wellness such as Ayurveda, Acupressure, Yoga, Panchakarma are becoming a popular tool to complement healthcare systems in India and offer a preventive and curative approach to a host of lifestyles diseases, chronic illness, stress, obesity, etc. Increasingly, the concept of having a healthy mind, body & spirit is becoming mainstream. People now understand how important it is to spend time in nature, indulge in regular healing exercises, consume the right food and nutrition, and create healthy immunity.
Consequently, this is unfolding demands for new-age second home communities, rich in wellness such as spas, modern massage centers, Yoga and fitness studios, healthy organic food cafes, naturopathy, Ayurveda clinics, etc.
Families now substantially want to spend some time in a year amidst scenic environs and close to nature. They want to truly live a pollution-free natural and holistic life that will help them detoxify alongside improving their overall health and well-being.
What kind of projects is Axon planning currently?
Axon Developers is set to become a pioneer in India’s burgeoning health and second-home projects. We are committed to creating a lifestyle and perspective which is yet to be explored in the country.
Presently, we are working on The Origin-Sasoli, a wellness-themed land project located near the newly-built MOPA airport in Goa. Situated near the tri-junction of Goa-Maharashtra-Karnataka, it is a 600-acre branded land development with cottages, gated villas, serviced apartments, etc. Aimed at giving a truly holistic lifestyle along with a rich living experience, The Origin Sasoli will also have plenty of other facilities such as a 5-star hotel, nature resorts, natural trails, spas and Ayurveda centers, large clubhouses, high street retail, and much more. We are also working on a host of other ambitious projects amid Himalayan terrains, verdant tea gardens, coastlines, etc. The details about these projects will be released soon.