As per a Research Analyst's view at RNCOS, who has recently researched a report on “Opportunities in Indian Housing Sector (2006-2007)", unless there’s a revolutionary change in market conditions, flows of funds into Indian real-estate sector from foreign investors will continue for at least a couple of years from now.
Tourism is one of the critical industries to India’s economy, contributing a major chunk to its GDP. Longer-stay tourists prefer to stay in villas and condominiums over hotels. This is the major factor where Kerala score high over Goa as the biggest Second home market in India. Tourists come to Kerala to get themselves treated in Ayurveda. Usually an Ayurveda treatment takes weeks to months to finish. The climate and almost zero-pollution in Kerala helps too. The other factor works in favor of Kerala is its share of NRI population. For NRI’s these second homes doubles up as vacation homes as well as an investment opportunity with considerable growth potential.
The research predicts that this trend will more likely continue unless of course there is an economic downturn and demand abruptly tapers off. Another interesting point of India’s second home market is buying a second house in a different city near to office. If husband and wife are working in different cities, apart from the tax savings, to support their career and health, buying another home in another city makes more sense.
There is a continuously growing segment of new buyers. In most cases development has kept up the pace with demand and in other cases it has surpassed it. Although this research is small in terms of scale and the no. of real estate agents, developers, buyers and owners quizzed, making it less authoritative, It does emphatically suggest with data that the popular second home / holiday home markets can offer better return on investment currently than most of your first homes or the first residential property adds Kapston.com.
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