Developers tap rising residential demand in ‘hilly’ destinations

With the demand for residential units dwindling considerably across most urban Indian cities in the last few years, most major residential developers are looking at alternative lucrative destinations to sustain their margins. Holiday homes in hill states is a niche market which developers have stumbled upon. With the increasing demand for such homes especially among the uber-rich class, these developers are leaving no stone unturned in their efforts to tap into this lucrative niche market.

Prospective clientele

The demand for holiday homes or second homes in hills states is primarily among the uber-rich class with high disposable incomes or large sums of ancestral wealth. These include rich entrepreneurs, top-level executives and IT professionals, retired industrialists, people with immense ancestral wealth etc. Most of them are looking to invest in a second home or holiday home in the hills as it offers them a relaxed and peaceful environment, away from the hustle and bustle of city life. It provides them with a serene getaway for a vacation or for relaxing during a weekend. At times, they are even willing to rent it out to tourists as a home-stay for a short period.

Major ‘hill’ destinations

Many small developers have already been offering homes in important hill stations such as Shimla, Nainital, Mussoorie, Manali, Darjeeling, Munnar, Ooty, Kodaikanal, Matheran, Srinagar, Khandala, Dhanaulti, Kasauli, Mount Abu, Shillong, Dharamsala, Ranikhet, Pahalgam, Mukteshwar, Matheran, Dalhousie, Kullu, Almora, Chamba, Badrinath, Gulmarg, Gangtok, Kalimpong, Tawang, Mirik, Lonavala, Mahabaleshwar, Panchgani, Panhala, Saputara, Aruku, Coonoor, Coorg, Devikulam, Idukki, Peerumedu, Nandi Hills, Horsley Hills, Ladakh etc., which are frequented by tourists all through the year. However, of late, many prominent national players like DLF, Tata Housing, Fire Capital and Woodside Developments have entered the market to provide a major boost to this niche market across the country.

Projects of major developers

Several major developers have already embarked on many prestigious residential projects in these picturesque locales. Tata Housing has already launched a gated villa project called Myst Villas in Kasauli, Himachal Pradesh. It consists of about 70 villas which will be constructed across 24 acres, with each unit priced between Rs. 4-8 crore. Woodside Developments is in the process of completing a villa project in Kasauli. It will consist of about 35 villas, with sizes ranging between 2800 sq. ft. to 5000 sq. ft. besides having a clubhouse. DLF has launched a gated villa project in Shimla called Samatara and another in Kasauli called Samavana. Shikhar Group has many residential projects in Nainital. Metro Builders has already completed many apartment projects across Ooty. Lodha Group has already completed a mega villa project in Lonavala called Lodha Goldcrest. Divyasree Developers is in the process of completing a villa project in Nandi Hills called Valley of the Wind.

Benefits and prices

Luxury residential developments in the hills are much sought after as a holiday residential destination. There is considerable demand for such units in recent times as many buyers have moved beyond beach holiday residential destinations and prefer hilly locales due to peace, tranquillity and the pollution-free environment that they provide. Gated communities in hilly destinations is a new concept with considerable demand for contemporary lifestyle houses. The price of most of the residential projects, particularly villa projects in these hill destination ranges between Rs.1-5 crore, based on the popularity of the hill destination as well as the facilities offered. However, there are many units which are also priced lower and higher than this price range. The build-up area of these residential units ranges between 2,500-5,000 sq. ft.

Future prospects

With the emergence of many major developers into this niche market, there are many more buyers looking for quality residential units in these hilly destinations. This could encourage many more prestigious developers to enter the fray and tap the potential that this niche market offers. To cater to the rising demand for such residential units among the upwardly mobile clientele, developers can be expected to enter hitherto unexplored hilly destinations in the country which could widen the scope and range of this lucrative market segment.