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COVID-19 impact: Ultra-rich want a second home but not too far from their city

They have set aside up to Rs 20 crore for their home away from home, a survey has found.

Oh, the perks of being fabulously wealthy.

Confined to their apartments in the city by the coronavirus outbreak, 74 percent of ultra-high net worth individuals (UHNIs) want a second home with big green spaces, a report has said.

But they don’t want to be too far from the city, a five-hour drive is what they are looking at.


“It will become a norm for people to have second homes around the city due to the panic of being holed up in a 1200 sq ft box,” a report by India Sotheby’s International Realty has said.

“Demand will rise for second homes in the vicinity of a city, with all future remedies within a five-hour driving range from cities.”

The survey was conducted among UHNIs of India for a better understanding of what was expected of the luxury residential landscape.

The majority of people who were surveyed live in condominiums (66 percent) followed by bungalows (32 percent). The remaining two percent stay in farmhouse.

When asked what would be the first thing they would do if they were to design their homes, 81 percent said they would prefer large open green spaces.

Almost 74 percent said they would upgrade to a second home and 97 percent of them have set aside up to Rs 20 crore for the new residence.

They have been doing some digging too and could be eyeing a bargain buy. At present, demand is low and supply high in the real estate market, they said. Prices will fall in the immediate future and are likely to rise after two years if there are no more disruptions.

They are also of the opinion that residential properties will do better compared to the commercial ones, which is not off the mark as more and more people work from home.

Demand for homes in the independent segment may also increase in the future, the survey said.

International property consultants Savills’ sixth research nugget on COVID impact series-- Profiling Locked-Down Homes--also said despite the gloom, about one-fifth of end-users may return to the real estate market in six to 12 months, as per the sentiment during May. Though a minor segment, this could still be a reason for the light at the end of the tunnel.

End-users also showed an inclination to purchase second homes. About 30 percent of such buyers said they would be interested in locations like Goa and about the same number showed interest for properties in the hills.
First Published on Jun 30, 2020 03:34 pm