Vacation Homes investments in India are growing briskly since outbreak of COVID-19. India is witnessing growth of UHNIs and HNIs populations and people aspire for investment in lifestyle. Vacation Homes provides a good lifestyle and investment product to the target audience.

Important factors for investing in vacation homes Investments includes city, developer’s profile (quality), available amenities, management post construction and return.

Goa is the most attractive location for Vacation Homes Investment in India. Other attractive markets in India includes Alibaug, Lonavala, Kasauli, Mussorrie in West and North India. Whereas Ooty and Coorg are preferred markets in South India.

There are two types of Vacation Homes, the ones which are managed by a company and others are part of resorts which can also be called service residences.

It is advisable to invest in Grade A vacation homes properties as it attracts good customers, developed by good developers, developed as per local regulations, have good project amenities and infrastructure. One can invest in ready or under construction properties as supply for sale is limited.

The average net annual ROI varies between 3% and 5% in Goa and other established markets. In Service Residences (Vacation Homes part of existing resorts) segments, few options provide annual ROI between 10% and 15%.