Affluent Indians seek second home to escape Covid-19 pandemic rage

Enquiries have jumped 20-40% vis-a-vis pre-Covid period, say realty agents

The need to escape covid-infested cities is prompting well-heeled Indians to look for a second home in ‘safer’ places. They are looking everywhere, from the outskirts of the city they live in to tier-2 cities, green belts with open spaces within the city, the hills, and even Dubai.

Ritesh Mehta, senior director at real estate consultancy firm JLL India, said inquiries for second homes have risen 20-30 per cent since before the pandemic. The second wave, in particular, has triggered a rush from people in cities such as Mumbai, Delhi, Chennai, and Bengaluru.

“Some are looking for a second home within 40 km of where they live in, while others are prepared to go as far as 300 km as long as the area is green and open. While in the initial stages it started with enquiries, we are now seeing transactions rising by 15-20 per cent,” said Mehta.

Anarock Property Consultants has also reported a similar trend. It has seen enquiries in NCR, Mumbai Metropolitan Region, and Bengaluru rise by 30- 40 per cent. In New Delhi, farmhouses ranging from Rs 10-100 crore in Chhatarpur and Sultanpur are in high demand.

Anarock says average monthly deals of farmhouses have risen from 2-3 in the pre-pandemic period, to 10-12 now. “With the second wave here, we anticipate demand growing and once the lockdown is lifted, luxury buyers will try and seal the best deals,” said Anarock Chairman Anuj Puri.

The pandemic, he said, has scarred people. “It has left a deep impression on homeowners who are seriously reconsidering their housing options and see the second home option as something permanent,” said Puri.  

In Mumbai, JLL has found that buyers are divided into two segments. One is the HNIs, who are looking for homes with a price tag of Rs 5-20 crores and mostly taking the option of buying land as they want to design their homes themselves.

The second is of millennials, searching for smaller properties — row houses or apartments — costing Rs 1-5 crore with good Wi-Fi connectivity and infrastructure to allow easy travel to work and back. 

“Covid-19 has given a push to second homes which can also be used for working-from-home in Tier 2 locations. Suddenly, these locations are getting a lot of traction. So in Bengaluru, we are seeing well-heeled customers looking at Mysuru and Ooty. For Chennai, it is Puducherry and for Delhi, it is Shimla and Kasauli or Parwanoo,” said Subhankar Mitra, managing director (advisory services), Colliers India.

The hottest destinations for Mumbai HNIs are the usual suspects — Lonavala, Khandala and Alibaug. Land prices have risen by 8-10 per cent. Millennials are willing to go to Nashik (300 km away from Mumbai), Karjat, and Deolali, and some are willing to go to the borders of Panvel. They generally prefer something that is ready to move into and are looking for properties that were not selling during the pre-covid phase as prices would not have risen much.

In Chennai, there is high demand for farm houses in Mahabalipuram and Kovalam Main Road, said Anarock. Ever-popular Goa still  attracts HNIs. Deals have been closed at a staggering Rs 200 crore on the fabled beach front as well as in the elite second home reserve of Aamby Valley near Mumbai.

Some Indians are looking at Dubai not only because it is just a few hours away but because it handled the pandemic reasonably well. Mehta said transactions are up by 15-20 per cent compared with before the pandemic.

Further, the once virtually dead resale market of properties in the UAE has been rekindled by many HNIs who want houses that are ready to move into.

The fact that property prices have been falling in Dubai for the last three to four years make it even more attractive, added Puri. Anarock has been receiving 20-30 per cent more queries in the past year. The other attraction of Dubai is that properties range from Rs 1-2 crore (comparable to Mumbai or Bengaluru) to Rs 50 crore, suiting all budgets. 

“ROIs are attractive as you have to pay only 50 per cent in instalments till you get possession and the rest in five years. The builders rent out your property if you wish, which finances your EMI,” said Mehta.