Realty prices driven up by holiday homes

Chennai: The realty prices of numerous coastal locales and hill stations located within driving distance from the city have been increasing due to the desires of the upper-middle class families to own their personal holiday homes to serve as weekend getaways.

Absorbing an appreciation of more than eleven percent per annum, numerous holiday home locations are in fact either better off than or comparable with few of their urban counterparts which are constrained by space limitations. Presently, the bulk of second homes are featured upwards of Rs 1 crore.

Popular locales:

While few families own second homes in hill stations such as Kodaikanal and Ooty, which are located within driving distance from their first homes in Coimbatore, Salem or Chennai. While there are lots of others who seek plots besides the beach either at the East Coast Road or Old Mahabalipuram Road.

Reason behind the demand for holiday homes: 

As per analysts of commonfloor.com, the lifestyle quotient within most metros is low due to the prohibitively high property prices. These exorbitant prices are driven by the insurmountable space limitations which exist in areas located in close proximity of central business districts and office hubs. Thus, with a view on reducing the commuting distance; natural ambience and comfort is sacrificed by people.

Demographic of buyers:

As per survey data collated by commonfloor.com analysts, holiday homes buyers mostly hail from either the middle or top management segments and generally belong to the age bracket ranging from 35 to 45. Second home buyers prefer locations such as ECR, OMR, Shollingalur or the beach side plots located after the toll gates at ECR. Few go as far as Puducherry, Theni, Yellagiri, Kolli Hills etc.

Price Trend:

While the cost of row houses reach up to Rs 3 crore, bungalows can cost upwards of Rs 5 crore at OMR. ECR is the most expensive of the lot, where villas can cost more than Rs 6 crore. Over the last decade, the prices of real estate situated along the coastline between Chennai and Mahabalipuram have appreciated by almost 100 times. The entire stretch of ECR is sprinkled with villas and bungalows which range from Rs 1 crore to upwards of Rs 10 crore. Presently, areas lying in the outskirts, such as Mahaballipuram and Meiyur near Chennai, Omalur near Salem, Odiyur and Paramankeni near Puducherry have gradually started breeding a healthy farmhouse culture, wherein independent villas are priced between Rs 1 crore to Rs 4 crore. Although Yelagiri located in Vellore district displayed some promising signs about a decade ago, owing to its low altitude it has failed to live up to expectations.