The real estate sector in India continues to boom, with the second home sector attracting massive investments. India’s second home sector was estimated to be a $1.4 billion industry in 2021. By 2026, this sector is likely to reach $4 billion, growing at a CAGR of 23.63%.
Second homes also yield impressive rental income. Therefore, it pays to explore the vacation rental market in India.
1. Panjim
Panjim happens to be a popular destination for second home buyers. Being the capital of Goa, it has a great nightlife. Also, you would love the beautiful beaches which are easily accessible from the cottages and villas.
2. Sindhudurg
At 7.2% per year, the rental yield at Sindhudurg is among the highest in the country. This beautiful place is located close to Goa. The residents love the lush green views, thick forests, and calm ambiance. Along with this, you have exotic plantations and lots of activities. The MOPA Airport has been developed close to the project.
The hospitality pipeline looks impressive, and is estimated to be around INR 2700 crores by 2030. Therefore, Sindhudurg will continue to be one of the prominent second home markets in India.
3. Nandi Hill
Located close to Bengaluru, Nandi Hill is one of the best places to purchase second homes. It lies around 20 Kms. away from the airport. Mostly, this place has properties in 3 and 4 BHK configurations. The rental returns look impressive, which start from INR 75K per month.
People love the trekking trails, misty clouds, archaeological sites, and beautiful rains around this place.
4. Lonavala
Lonavala is a beautiful hill station in Maharashtra, where the vacation home market is growing consistently. It is located between Pune and Mumbai. You would love the beautiful lakes, green-capped hills, dams, and popular waterfalls around Lonavala. Besides, it has got several caves, temples, forts, and archaeological sites. Currently, the rental yield is around 5.9% here.
5. Lavasa
Lavasa is a planned town near both Pune and Mumbai. Located in the Mulishi Valley, it attracts second home owners in large numbers. If you love to engage yourself with sports activities like nature walks, trekking, hiking, cycling, and mountaineering, it’s wise to look out for villas or bungalows here.
The demand for second homes has been rising all over the country. Investors are looking for cottages, bungalows, villas, and low-rise buildings to purchase vacation homes. Working professionals as well as HNIs are purchasing these properties. This has significantly contributed to the growth of the real estate sector in India.
