by Dr. Sachin Chopda, Managing Director, Pushpam Group
Recently, resort homes marked a significant disruption in the Indian real estate space, rooted in the homebuyers’ surging interests. The appealing combination of luxurious recreational living and proximity to nature in peaceful environments transformed resort homes into one of the most favorable choices for a wide demographic. These residences provide the ideal balanced lifestyle between urban sophistication and serene vacation-like living to experience comfort, relaxation, and convenience. But more than a status symbol, resort homes have evolved with the current trends in lifestyle preferences- thanks to the proliferation of remote working, technological advancements, intense health and wellness awareness, and the desire to escape the urban hustle.
The growing essence of work-life harmony and leisure is the primary reason behind the extraordinary increase in the number of resort homes. Homeowners desiring active and healthy lifestyles are increasingly drawn towards these properties, coupled with other factors (like privacy, exclusivity, and access to luxurious amenities). The desire for such properties is an expectation of the changing lifestyle needs post-COVID, where the shift to a flexible working environment and options dominates.
A glimpse at the present market scenario
The vacation/resort home market has witnessed tremendous growth lately due to the changing needs of homebuyers. Currently, the demand for second and holiday homes is estimated at US$2.1 billion, with an astonishing increase of 23.6%. In fact, the holiday home industry shot up remarkably by 88.63% in value as compared to 2019’s pre-pandemic records and touched US$1.394 billion in 2021. This boom is an indication that people are aspiring for more than just a shelter meeting their personal and financial aspirations.
Several locations in India have become ideal for resort homes, as they have robust tourism infrastructure. Goa, Karjat, Dapoli, Alibaug, Himachal Pradesh, etc, are some of those most preferred regions known for their mesmerizing scenic beauty and modern facilities. The increasing tourism scope is a significant factor in the growth of leisure homes in these areas.
Advantages of resort homes
Resort residences elevate overall living standards for multiple reasons, including work-for-home opportunities, better connectivity, recreational amenities, and investment opportunities. A diverse range of buyers, from young professionals to retirees, lead this transformation, all seeking the unique lifestyle offered by resort homes.
Remote work culture
Remote workers can enjoy numerous lifestyle and financial advantages, which make the resort properties appealing. The concept of conventional residential settings has undergone a drastic shift courtesy of distant working. Vacation homes present the perfect opportunity for those who intend to work with high-speed internet while still on vacation. They offer productive settings for individuals willing to combine work and enjoy the benefits of being on holiday.
Recent studies claim that the Indian Vacation Rental market will grow by US$2.12 billion by 2024, with a CAGR of 8.72%, resulting in a market volume projection of US$3.22bn by 2029. An increasing number of users within this segment is also anticipated, boosting demand for resort homes as great workstations.
Investment potential & income generation
Through unmatched investment propositions, resort homes’ valuation is anticipated to increase consistently by around 8% to 9% per annum over the years. With tourism and domestic travel gaining solid momentum, property owners can generate rental income from vacationers, especially through digital platforms, to ensure greater financial stability through a consistent income flow. Studies suggest that by 2029, 53% of the Vacation Rentals market’s revenues will be sourced from online sales. The above factors make resort properties a prudent investment for the long haul.
Holistic health and wellness
Resort homes have made wellness and relaxation amenities such as gyms, spas, organic farming, and other outdoor activities available, encouraging residents’ physical and mental well-being, which was once confined to high-end hotels. Additionally, the calm and serene natural environment of resort locations helps alleviate stress, thereby promoting a healthy lifestyle.
Sustainable initiatives in resort homes
Sustainability has taken a center stage in real estate, and resort homes are no exception. Among them, the significance of eco-friendly design, building practices that employ energy-efficient purposes, and the solutions that adhere to sustainable living cannot be overstated. The construction of resort buildings is subject to more green architectural measures as the developers are concentrating more on environment-friendly materials and technologies. Resort homes are incorporating features like solar energy, rainwater harvesting systems, and effective waste disposal management in most resort homes today.
These measures transcend beyond reducing the ecological footprint of leisure homes. They carefully lower the homeowners’ operating expenses, thus ensuring a higher return on investment. For example, energy-efficient households are designed to cut down the cost of utility payments, while green building materials ensure the structure’s durability for a longer period. In an age where consumers’ concern for the environment is on the rise, sustainable resort homes are more attractive to consumers.
Future outlook of resort homes
Looking ahead, the India Vacation Rental market revenue is expected to grow from $2.3 billion in 2023 to $3.1 Billion by the end of 2032, registering a CAGR of 4.00% over the forecast period (2024-2032). This anticipated rise can be attributed to the growing number of domestic tourists, infrastructural development, and lifestyle changes. New resort home developments shall also emerge in previously untapped areas due to the enhancement of transport and communication networks that ease accessibility to remote scenic locations. Also, properties that promote a holistic lifestyle through incorporating wellness facilities like yoga & meditation spaces, organic farms, and spa services for homebuyers will garner surging demand.
For those willing to invest in real estate, resort homes will continue to be a viable option. These properties are likely to appreciate in value as the market for holiday homes continues to grow due to increased domestic tourism. The resort home market is clearly on an upward trend, with user penetration projected to rise to 5.4% by 2029 from the existing 3.8% in 2024.
The increasing attractiveness of resort homes is in a position to entice NRIs, tech entrepreneurs, corporate personalities, and art aficionados alike. For NRIs, these types of properties serve the dual purposes of being a lucrative investment and a lavish holiday home in their homeland. Tech entrepreneurs and corporate bosses, on the other hand, look for calm settings where innovation can flourish without interfering with their work-life balance, and art lovers seek accommodation in equally calming and picture-perfect places for creative purposes. In short, resort homes are and will continue to be an ideal choice for varied lifestyles in the future.
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