Second Home Destinations For Mumbaikars
A weekend getaway in the beautiful and scenic spots such as Western Ghats is something many Mumbaikars opt for. However, these scenic places have now become more than a weekend getaway option as they provide a huge variety of housing options. Due to these options, more Mumbaikars opt for second homes in these places.
Higher disposable income increases importance for second homes
India witnessed a rapid economic growth over the past decade. With that, the disposable income also doubled. The country’s disposable income has been growing at 15% compound annual growth rate (CAGR) over the past 5 years. The consumer spending too has increased by 35% during the same period. Increase in disposable income and consumer spending have made second homes more important in recent times, especially in Mumbai.
Mumbai’s vertical growth has resulted in its residents feeling the necessity for more open space. The city is a pioneer of the apartment culture. While this vertical growth has seen a demand for realty development, many citizens feel deprived of the open spaces such as own gardens, open skies and more floor area, which would be otherwise available. This dissatisfaction and liking for open spaces has led to a trend in people with high disposable income opting for second homes at places far from the busy city limits.
Popular second home destinations
Some of the popular second home destinations for Mumbaikars include Mulshi, Mahabaleshwar, Alibaugh, Lonavala, Goa, Tamhini Ghat, Matheran, Talegaon, Karjat and locations near Sinhgadh Fort such as Khanapur, etc. There are multiple reasons why these places are popular choices for second homes.
Firstly, they have a good climate which is different from the polluted city environment. Secondly, they are just a few hours’ drive from Mumbai’s city limits. Then there are people who look at these places from the perspective of post-retirement homes. Second homes can also be seen as a lifestyle statement by many people. Connectivity is a major factor that has made these places attractive options. For example, the Mumbai-Pune expressway and other highways provide good connectivity and reduce travel time to locations such as Khandala, Lonavala, Kashid, Alibaug, etc.
Real estate investment opportunities
Apart from these factors, second homes provide real estate investment opportunities, either for long term capital appreciation or regular rental income. Property prices in these locations see constant appreciation. Prices have increased by 10-15 times in the past 4-5 years in these locations. Good connectivity, demand for ambient climatic conditions and desire to unwind in the nature are the primary factors which have led to price appreciation. Access to amenities such as stores and hospitals too drive demand as well as price appreciation for these houses.
Second home prices
Prices of second homes vary widely based on the different factors mentioned above as well as their sizes. In localities such as Mulshi, Lavasa, Malshej, Kolad and Matheran, price of a second home starts from Rs. 25 lakhs. Villas in areas such as Lonavala or Khandala cost anywhere between Rs. 1.5-10 crores.
