Until a few years ago, owning a home was a lifelong financial process; one had to spend lifetime's earnings and retirement savings to buy a home. But, things have changed recently. Economic growth, rising income levels and easy and attractive home loan options have helped many people today to buy their first homes in their late 20s or early 30s. This provides them with the potential and the inclination of purchasing a second home (or a holiday/vacation home). An increase in the potential of Indian real estate has led to an upward growth in the investment plans of buyers.

India seems to have borrowed the trend of holiday homes from the West, but both societies differ in their driving motives and scales.

Peoples' choice of holiday homes depends on the area of residence. People in North India are inclined towards purchasing holiday homes in Uttarakhand and Himachal Pradesh. In the South, Puducherry is a preferred destination since it has enough options from local as well as national developers. Mysore has also retained its reputation as peoples' favourite second home destination.

For Mumbai residents, most commonly preferred destinations are Lonavala, Alibaug, Karjat, Khandala, Baneshwar, and Goa. Lonavala is famous not only for its exquisite hill view but also for the availability of row houses and bungalows. Alibaug is also the first choice of some residents who enjoy proximity to the sea and coastal areas.

Experts believe that the holiday-home market is, to a large extent, immune from the effects of recession since it operates on different considerations and dynamics. Demand for such homes is not based on necessity, but on the availability of personal disposable income of the buyer. It is a lifestyle choice. In most cases, the primary buyer is the high net income group.

Along with the potential for making a profit through tenancy, holiday homes provide one with the option of indulging himself in the activities he loves - be it connecting with nature or God, or enjoying the sheer opulence of lifestyle amenities. The aim of a holiday home, for a tenant or an owner, is to provide a temporary refuge that gives a break from the fast-paced urban environment.

However, like all other purchases, even a purchase such as this requires some considerations like:

Location

Good location is important if one is planning to rent it, and it can also fetch a good amount of the property's sale years down the line. If the house is bought for personal purposes, location still matters, for easy accessibility and commute.

Budget

After having finalized the location and the type of property one wants to own, it is important to establish a final budget one can spare. The budget must accommodate other costs like acquisition costs, transfer fee, conveyance fee, maintenance charges, interest rates etc. Size of the home will also determine its price.

Rental cycles

If bought for investment and leasing purposes, one needs to be aware of holiday home rental cycles. The cycles may fluctuate frequently, depending on the location and seasonal changes. Home-owners looking to rent their holiday homes can do so through portals like Airbnb, Happeno, Stayzilla, Roomorama, Villas etc.

According to market trends, there is more demand for second homes in locations that are well-connected to metros, yet serve as a convenient retreat from cities.

Having said that, one also needs to know that most hill stations have laws to protect the ecosystem and prevent indiscriminate construction activities by restricting sale and purchase of land.