Holiday home demand tapers off as rentals fall

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The surge in demand for holiday homes has diminished from its peak a year ago as the era of widespread remote work comes to an end with most companies now requiring employees to return to office, real estate professionals said.. Developers in Goa and the countrys hilly regions said property purchases are now predominantly driven by individuals seeking permanent residences even as a fall in rental incomes is compelling many investors to reconsider their involvement in the market and explore alternative investment opportunities...

Less occupancy impacts the rental return of the property, and though demand is substantially high, we believe only serious buyers will now buy property at holiday destinations, she said...

Most of the buyers in Goa and the hills in Uttarakhand and Himachal Pradesh are now looking to settle down there, developers said.. With the advent of asset management firms and hospitality operators managing individual homes, buyers of second homes are not only end buyers but retail investors seeking both rental returns and capital appreciation...

Demand for rental and short-term stays has cooled down slightly, but we are witnessing organic growth in demand for end-user properties, particularly among UHNIs (ultra-high net worth individuals) and HNIs in the luxury housing market, said Sudeep Chandran, founder and CEO of YOURS, a platform for fractional ownership of luxury second homes..

We have seen a lot of interest from businessmen or startup founders who are ready to settle down or at least want to stay for a longer period of time, said Gaurav Jain, managing director of Delhi and Goa-based Veera Developers that is developing 250-unit luxury apartment projects in Candolim and Calangute in Goa..

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