Holiday home demand tapers off as rentals fall
demand for holiday homes has diminished from its peak a year ago as the era of widespread remote work comes to an end with most companies now requiring employees to return to office, real estate professionals said.
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Developers in Goa and the country’s hilly regions said property purchases are now predominantly driven by individuals seeking permanent residences even as a fall in rental incomes is compelling many investors to reconsider their involvement in the market and explore alternative investment opportunities.
“Even in the last peak season, occupancy in villas was not as good as the previous year, making investors rethink the strategy,” said Shveta Jain, managing director, residential business, at real estate service providerSavills India.
“Less occupancy impacts the rental return of the property, and though demand is substantially high, we believe only serious buyers will now buy property at holiday destinations,” she said.
Most of the buyers in Goa and the hills in Uttarakhand and Himachal Pradesh are now looking to settle down there, developers said.
With the advent of asset management firms and hospitality operators managing individual homes, buyers of second homes are not only end buyers but retail investors seeking both rental returns and capital appreciation.
“Demand for rental and short-term stays has cooled down slightly, but we are witnessing organic growth in demand for end-user properties, particularly among UHNIs
