Buyers of second homes back in Delhi NCR

Second homes are now a revived real estate category and all class of buyers are active here.Brix Research finds out why

Girish Bindra bought a single-floor apartment in South City for Rs 73 lakh.With registration of single floors restarted in Gurgaon market,he wanted to beat the rush and purchase a home that would remain affordable.It also helped that Delhi Metro's soonto-be-opened Sector 29 station is a mere walking distance away.For Bindra,who had been scouting markets for a while,it made sense to strike before property prices went out of control.A critical third factor was that rental values are not showing signs of abating.For a well-maintained home,there are always takers and a walking distance from Metro line is an added advantage.Bindra is by no means an exception.
Real estate developer and asset management company,Alpha G: Corp,is currently in the process of handing over plotted development of 141 acres in Phase-I of Alpha International City,Karnal.Just a two-hour drive from Delhi,and close enough to Chandigarh,the group found among its buyers an interesting mix of users.

For some young couple from established families in Karnal,it was a weekend option to get away from the crush of living in a joint family.The Alpha City home was their small nest where they experienced nuclear family comfort.For some others from Delhi and Chandigarh,it was a weekend or holiday home accessible in under two hours from the city of their work.The scenic surroundings,the pleasant drive,the impeccable infrastructure and availability of water and electricity in abundance made this a good second home option.

So what is a second home Rohit Gera,executive director of Pune-based Gera Properties,says: "People buy second homes either for an investment or to upgrade to a larger home,with better facilities,amenities or a better location.Most second homes are in the same city,but probably in a new upcoming suburb,which offers better infrastructure and amenities.If they buy in some other city,it will be due to the exposure they have had to that place before.They would have studied,lived or worked there."

This is borne out by Aplha G: Corp's experience in Karnal.S K Sayal,director & CEO of Alpha G: Corp,says: "Extensive research done by our team before the launch revealed very clearly that there was an ever-increasing aspiration and demand for more wholesome and organized lifestyle among adults,as well as children in families of Tier 2 & Tier 3 towns,as also people from Delhi and Chandigarh.They seized this opportunity for a second home in a destination deemed as a premium investment opportunity in real estate."

Gera's observation seems to be bang on target.For Prince Khattar,who purchased a small two-bedroom apartment in Gurgaon in 2003,this seems to be the right time to upgrade.The money he gets from selling his existing flat becomes seed money for a newer apartment and having finished his first home loan,he is ready to take on a new home loan to meet the shortfall in the second property.The stabilizing values give him confidence to do so.

For Mamata and Anil Saxena,a second home did not necessarily mean a place that was at an easy driving distance from the city.They chose one in the heights of Geeling in the Himachal."We wanted a place away from radio,television,close to nature and one which is still to be made motorable."It helped that their present home in Nirvana city already has all benefits of spacious layout and likeminded neighbours.Therefore,the forbidding drive to Geeling became pleasurable for them.

A third category buying a second home,Sayal found,are "NRIs looking to trace their roots with an option to invest in their country of origin with all the amenities and comforts of a truly international lifestyle here."This is a segment that most developers today are targeting.NRIs are game to purchase in areas that have future potential and are well-connected from international airports.For Shailaja and Kishore Nair,a home in Gurgaon near their relatives' homes meant they could drive there straight from the airport when they returned home for holidays from Singapore."It is a pleasure to stay in your own house,than stay with relatives,"says Nair.

For Anup Nair,the purchase of a premium apartment has given him the option to switch to apartment living whenever he decides to do so.Currently staying in a premium villa in Gurgaon,he has used his surplus resources to purchase an apartment in a condominium to be used whenever they decide.

The parameters for an investor are slightly different,as an investor will buy into a location which is slated for robust development and promises a good return on investment."They prefer locations that are closer to large work places like IT parks or industrial centers that would generate yields or capital appreciation,"explains Gera.

Today,in a stable real estate market,there are all these categories of buyers actively scouting for good deals.And many are finding the house of their dreams yet again.