Decoding Tax Savings: A Closer Look at Under-Construction Property Investments
Second homes have transitioned from being symbols of luxury to practical investments offering a blend of comfort and financial benefits. As markets evolve, the idea of owning a second property is gaining traction among individuals seeking long-term value. With demand rising, second homes have emerged as a secure and profitable asset class.
A Surging Trend in Real Estate
The second-home market has seen rapid growth in recent years. According to a 2023 report by Knight Frank India, the demand for second homes increased by 35% compared to 2019. This surge is driven by changing lifestyles, increased remote work opportunities, and the desire for alternate sources of income.
Popular destinations such as Goa, Lonavala, and Coorg have seen property prices appreciate by an average of 8% annually over the last five years. In Goa alone, the median price of a second home is now ₹90 lakh, a rise of 12% since 2020. This upward trend reflects the strong potential for long-term value appreciation in this segment.
Income Generation Through Rentals
One of the strongest arguments for owning a second home is the ability to generate rental income. In tourist-heavy locations, short-term rentals can deliver 6% to 10% annual yields. For instance, a villa in Lonavala priced at ₹1 crore can generate approximately ₹8 lakh per year in rental revenue, assuming a 60% occupancy rate during peak seasons.
Platforms like Airbnb and Booking.com have revolutionized the rental market, providing owners with easy access to a global pool of tenants. A property in a high-demand area can start producing returns within six months of acquisition, offering a steady cash flow while its value appreciates.
A Shift in Lifestyle Priorities
Remote work and flexible schedules have changed how people view second homes. They are no longer limited to occasional getaways but are increasingly used as work-friendly living spaces. A 2022 Anarock survey found that 42% of second-home buyers prioritize properties with amenities like high-speed internet and dedicated office spaces.
These homes also cater to wellness-focused lifestyles, offering tranquility away from crowded urban centers. Properties in scenic areas with access to natural surroundings and recreational facilities see higher demand, as buyers seek healthier and more balanced living environments.
Long-Term Financial Security
The appreciation potential of second homes makes them a reliable tool for building long-term wealth. Over the past decade, property values in key Indian markets have grown at an average annual rate of 7%, outperforming inflation. This figure can go up to 10% annually in locations with strong tourism appeal.
Second homes also serve as valuable assets for legacy planning. Families often see them as properties that can be passed down through generations, providing both emotional and financial security to heirs.
The second-home market is thriving, driven by its dual promise of comfort and financial returns. With the potential to generate rental income, provide a work-life balance, and appreciate value, second homes stand out as a smart and secure investment. As the numbers show, these properties are not just assets – they are avenues for creating stability and future wealth.
Strategically investing in a second home today can ensure both immediate benefits and long-term financial growth, positioning it as one of the most dependable assets in a diversified portfolio.
Utkal Builders – Restablishing Real Estate Investments
Utkal Builders has been a pioneering name in the real estate sector, offering properties that seamlessly combine modern architecture and long-term investment potential. Known for its meticulous planning and high construction standards, the company has been instrumental in creating residential spaces that appeal to second-home buyers.
With properties strategically located in growth-centric areas of Bhubaneswar and beyond, Utkal Builders ensures consistent value appreciation and rental potential. The company’s focus on quality, sustainability, and client satisfaction makes it a trusted choice for individuals looking to secure their financial future through real estate investments.
