What is the story about?
The market for second homes in India is witnessing growing interest, driven by lifestyle preferences, investment potential, and distinct taxation rules. Experts say buyers are treating these properties as long-term assets
that combine leisure, rental income, and appreciation.
Why buyers choose second homes?
Sahil Verma, COO of Shray Projects, said that post-pandemic, buyers seek holiday or weekend homes near nature, outside congested metropolitan areas.
“Increasing prosperity, improved infrastructure connectivity, and diversification of real estate portfolios are strong drivers. For several buyers, it is also about building a long-term family-use asset and preserving wealth,” he added.
Ashish Agarwal, Director at AU
Real Estate, noted that second homes are “no longer seen just as an indulgence but as a calculated decision. People want a space they can escape to, but they also want that home to work for them through rental income, long-term value appreciation, or even as a future retirement option.”
Agarwal added that buyers today often consider vacation usage, rental potential, and long-term appreciation together.
the lifestyle aspect,
Riddhiman Jain, Managing Director and Head of Investment
Strategy and Solutions at Waterfield Advisors, highlighted financial considerations alongside lifestyle.
“Rising property values in tier-1 cities and fast-growing tier-2 hubs make real estate a reliable way to safeguard wealth and diversify investments. Locations like Goa, Bangalore, Shimla, and Dehradun attract buyers seeking rental yields or weekend retreats,” he said.
Amar Kapoor, Founder of Terra Grande by Eldeco Group, said lifestyle is a key driver.
“While investment and rental income remain
considerations, most buyers now prioritise second homes as vacation or lifestyle retreats rather than purely financial assets. Rising property prices and relatively stable interest rates have reinforced this trend," he told CNBC-TV18.
Financing and loan considerations
Pramod Kathuria, Founder & CEO of Easiloan, explained that second-home loans are handled differently from first-home loans.
“The documentation and eligibility process is similar, but lenders give greater emphasis to the borrower’s current
liabilities and repayment capability. Interest rates may vary slightly, and loan-to-value ratios are typically more conservative," he said.
Amit Vakharia, Vice President of Projects at Ashar Group, cited survey data supporting the growing interest.
“The 2025 Luxury Residential Sentiment Survey by India Sotheby’s International Realty shows that 54% of respondents are keen on purchasing or upgrading a second home. Investment diversification and steady property appreciation continue to influence buyer decisions," he said.
Taxation of second homes
Darshini Thanawala, Vice-President at The Chapter, outlined the key differences between primary and secondary residences.
“For a self-occupied first home, annual value is considered nil, and owners can claim deductions on home loan interest up to ₹2 lakh. For second homes, similar interest deductions apply for both properties together. From the third home onwards, properties are treated as ‘deemed to be let out,’ and notional rental income is taxed. Capital gains exemptions are restricted for those owning multiple homes," she
said.
Ashish Agarwal added that while tax treatment differs, buyers often focus on the broader picture, which includes rental income, long-term appreciation, and lifestyle benefits.
ALSO READ | Festive season expected to drive real estate investments across segments, say experts
Why buyers choose second homes?
Sahil Verma, COO of Shray Projects, said that post-pandemic, buyers seek holiday or weekend homes near nature, outside congested metropolitan areas.
“Increasing prosperity, improved infrastructure connectivity, and diversification of real estate portfolios are strong drivers. For several buyers, it is also about building a long-term family-use asset and preserving wealth,” he added.
Ashish Agarwal, Director at AU
Agarwal added that buyers today often consider vacation usage, rental potential, and long-term appreciation together.
Vishal Tony Vincent, Managing Director at Aratt Developers & Founder of Ayatana Hospitalities, emphasised
“Second homes today are not just financial assets but emotional investments—spaces that combine luxury, community, and personal wellbeing with long-term value creation," he said.
Pavan Kumar, Founder & CEO of White Lotus Group, noted that for many families, second homes serve as “weekend retreats and wellness-driven sanctuaries,” where rental potential provides financial flexibility but personal use remains the priority.
Riddhiman Jain, Managing Director and Head of Investment
“Rising property values in tier-1 cities and fast-growing tier-2 hubs make real estate a reliable way to safeguard wealth and diversify investments. Locations like Goa, Bangalore, Shimla, and Dehradun attract buyers seeking rental yields or weekend retreats,” he said.
Amar Kapoor, Founder of Terra Grande by Eldeco Group, said lifestyle is a key driver.
“While investment and rental income remain
Financing and loan considerations
Pramod Kathuria, Founder & CEO of Easiloan, explained that second-home loans are handled differently from first-home loans.
“The documentation and eligibility process is similar, but lenders give greater emphasis to the borrower’s current
Amit Vakharia, Vice President of Projects at Ashar Group, cited survey data supporting the growing interest.
“The 2025 Luxury Residential Sentiment Survey by India Sotheby’s International Realty shows that 54% of respondents are keen on purchasing or upgrading a second home. Investment diversification and steady property appreciation continue to influence buyer decisions," he said.
Taxation of second homes
Darshini Thanawala, Vice-President at The Chapter, outlined the key differences between primary and secondary residences.
“For a self-occupied first home, annual value is considered nil, and owners can claim deductions on home loan interest up to ₹2 lakh. For second homes, similar interest deductions apply for both properties together. From the third home onwards, properties are treated as ‘deemed to be let out,’ and notional rental income is taxed. Capital gains exemptions are restricted for those owning multiple homes," she
Ashish Agarwal added that while tax treatment differs, buyers often focus on the broader picture, which includes rental income, long-term appreciation, and lifestyle benefits.
ALSO READ | Festive season expected to drive real estate investments across segments, say experts
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