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Second Homes Or Vacation Homes

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The document discusses the market for vacation homes internationally and in India. It notes that the international vacation home market is large and growing, especially in the United States. In India, the vacation home market is still developing but is expected to grow due to rising incomes and the interest of wealthy Indians and NRIs. Key success factors for companies in the Indian vacation home market include direct marketing, maintaining quality inventory, providing wealth management advice, and ensuring high service quality.

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SAPPHIREZ ASSET SOLUTIONS Market for Second Homes
Live your Dreams
Segmentation of Vacation Home market internationally Understanding Vacation Home Vacation Ownership Property owned generally for personal use Timeshare A timeshare is a form of vacation property ownership. The use and costs of running the resort are shared among the owners Vacation Rentals Renting out a furnished apartment or house on a temporary basis to tourists as an alternative to a hotel Vacation Exchange You trade your interval or week for new and different vacation experiences at comparable resorts across the country and around the world
International Demand Drivers Economy Population Propensity to spend Income Levels Rate of borrowing Growth rate Attracting investment Government Initiatives Conferences Baby Boomers Interest Rates Key movers of the Vacation Home market Tourism
Vacation Homes-Internationally Source: National Association Of Realtors 2006 Tennis Golf Key Learning's: Internationally activities are critical aspects of Vacation Homes Brokers / real estate agents play a critical role as channel partners Locational advantage needs to be broadcast for individual property
Vacation Home Buyers: International Distances between residence & Vacation Home Usually less than 100 miles Size of home : 1000-1500 sqf Average value per sq.ft Source: Economic Realtors Research
US Vacation Home Market International Vacation Home market is maturing and seeing considerable growth The US$ 13 billion Vacation Home industry in US is 0.10% of GDP as of 2005 Multiple players having unlimited product offerings GDP of US playing an integral role for burst of Vacation Home industry Vacation Home market is growing @ 9.7% worldwide & @ 14% in U.S Along with high growth rates comes heightened competition Brands would soon start at exploiting other geographies 0.05 % 0.08 % 0.10 %
Given the current economic trends we can draw the following hypothesis: - The Size of the Vacation Home industry is approximately US$ 0.757 billion or INR 34,150 Crore Experts predict the GDP growth rate to be close to 8%, the same would see a rise in income levels A factor which is one of the key growth drivers India Vacation Home Generation X will boost the growth of Vacation Homes in India India the next growth driver for international companies 0.05 % 0.08 % 0.10 %
Indian Luxury Consumer: HNI Disposable income 9 lac p.a Owns D/E segment car Residing in posh localities Average age = 36-40 CWE= Mostly Male Married and has kids 42% live in joint families 35% of wives working 44% traveling abroad for vacation, at least once a year
Affluent Map Of India Predominantly luxury consumers reside in the north and west Source: Technopark
Vacation Home : Snapshot Vacation Home 100-200 kms from metros around a natural attraction primarily hill stations, beaches International Vacation Homes in Dubai, London etc. Customers HNIs & NRIs Initial Value Proposition Variety & convenience of one stop shop Sustainable Value Proposition Needs based development Reach & access to NRIs Destination development and marketing
Indian HNI : Primary Target Products Vacation Home Purchase/Lease of Commercial Investment in Real Estate Funds/ REITs Competitive Landscape Wealth Managers proffering Equity & Debt instruments Dedicated sales team representing high value assets Advertising & PR by builders & marketers Needs Prestige, Ego Value High Service Quality Large portfolio of options Customized Advisory Relationship Building Credibility & Accountability Opportunities Convenience of one stop shop for real estate needs Advice rather than push Broaden the horizon to look at new emerging opportunities like equity involvement Wealth Management perspective
NRI : Secondary Target Products Vacation Home Equity investment in Commercial , Hotel Real Estate Development Competitive Landscape Wealth Managers proffering Equity & Debt instruments Dedicated sales team representing high value assets Needs High Service Quality Large portfolio of options Customized Advisory Relationship Building Credibility & Accountability Opportunities Convenience of one stop shop for real estate needs Advice rather than push Broaden the horizon to look at new emerging opportunities like equity involvement Reach to micro-segments
Key Success Factors Direct Selling & Marketing for HNIs, NRIs Dedicated sales and service team for HNIs / NRIs Dedicated processes and systems to manage service & sales issues Dedicated telemarketing & call centre support Direct marketing strategy comprising of internet marketing and other channels Pioneering new and exciting initiatives Example : Halfshare.com specializes in the shared ownership of luxury vacation properties throughout North America. They help buyers find their ideal vacation property or Vacation Home while matching them with the right co-owner through a Buyer Match Plan
Key Success Factors Continuous inventory acquisition by a dedicated team Dedicated team to scout for projects under development, completed projects, re-sale inventory Acquisition could be followed by Re-packaging the real estate to make it more appealing to the target buyer Sound Real Estate Knowledge Base Ability to track trends and assess impact for HNIs Ability to give a wealth management perspective and offer Good Service Quality Training & People development to offer good service experience Personalized service to HNIs/NRIs Robust processes for transaction management Strong performance management system
Live your Dreams
Call Sapphirez: Rajjeet Chandra Mobile : +91 9867974602 Email : rajjeet@sapphirez.co.in

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Second Homes Or Vacation Homes

  • 1. SAPPHIREZ ASSET SOLUTIONS Market for Second Homes
  • 3. Segmentation of Vacation Home market internationally Understanding Vacation Home Vacation Ownership Property owned generally for personal use Timeshare A timeshare is a form of vacation property ownership. The use and costs of running the resort are shared among the owners Vacation Rentals Renting out a furnished apartment or house on a temporary basis to tourists as an alternative to a hotel Vacation Exchange You trade your interval or week for new and different vacation experiences at comparable resorts across the country and around the world
  • 4. International Demand Drivers Economy Population Propensity to spend Income Levels Rate of borrowing Growth rate Attracting investment Government Initiatives Conferences Baby Boomers Interest Rates Key movers of the Vacation Home market Tourism
  • 5. Vacation Homes-Internationally Source: National Association Of Realtors 2006 Tennis Golf Key Learning's: Internationally activities are critical aspects of Vacation Homes Brokers / real estate agents play a critical role as channel partners Locational advantage needs to be broadcast for individual property
  • 6. Vacation Home Buyers: International Distances between residence & Vacation Home Usually less than 100 miles Size of home : 1000-1500 sqf Average value per sq.ft Source: Economic Realtors Research
  • 7. US Vacation Home Market International Vacation Home market is maturing and seeing considerable growth The US$ 13 billion Vacation Home industry in US is 0.10% of GDP as of 2005 Multiple players having unlimited product offerings GDP of US playing an integral role for burst of Vacation Home industry Vacation Home market is growing @ 9.7% worldwide & @ 14% in U.S Along with high growth rates comes heightened competition Brands would soon start at exploiting other geographies 0.05 % 0.08 % 0.10 %
  • 8. Given the current economic trends we can draw the following hypothesis: - The Size of the Vacation Home industry is approximately US$ 0.757 billion or INR 34,150 Crore Experts predict the GDP growth rate to be close to 8%, the same would see a rise in income levels A factor which is one of the key growth drivers India Vacation Home Generation X will boost the growth of Vacation Homes in India India the next growth driver for international companies 0.05 % 0.08 % 0.10 %
  • 9. Indian Luxury Consumer: HNI Disposable income 9 lac p.a Owns D/E segment car Residing in posh localities Average age = 36-40 CWE= Mostly Male Married and has kids 42% live in joint families 35% of wives working 44% traveling abroad for vacation, at least once a year
  • 10. Affluent Map Of India Predominantly luxury consumers reside in the north and west Source: Technopark
  • 11. Vacation Home : Snapshot Vacation Home 100-200 kms from metros around a natural attraction primarily hill stations, beaches International Vacation Homes in Dubai, London etc. Customers HNIs & NRIs Initial Value Proposition Variety & convenience of one stop shop Sustainable Value Proposition Needs based development Reach & access to NRIs Destination development and marketing
  • 12. Indian HNI : Primary Target Products Vacation Home Purchase/Lease of Commercial Investment in Real Estate Funds/ REITs Competitive Landscape Wealth Managers proffering Equity & Debt instruments Dedicated sales team representing high value assets Advertising & PR by builders & marketers Needs Prestige, Ego Value High Service Quality Large portfolio of options Customized Advisory Relationship Building Credibility & Accountability Opportunities Convenience of one stop shop for real estate needs Advice rather than push Broaden the horizon to look at new emerging opportunities like equity involvement Wealth Management perspective
  • 13. NRI : Secondary Target Products Vacation Home Equity investment in Commercial , Hotel Real Estate Development Competitive Landscape Wealth Managers proffering Equity & Debt instruments Dedicated sales team representing high value assets Needs High Service Quality Large portfolio of options Customized Advisory Relationship Building Credibility & Accountability Opportunities Convenience of one stop shop for real estate needs Advice rather than push Broaden the horizon to look at new emerging opportunities like equity involvement Reach to micro-segments
  • 14. Key Success Factors Direct Selling & Marketing for HNIs, NRIs Dedicated sales and service team for HNIs / NRIs Dedicated processes and systems to manage service & sales issues Dedicated telemarketing & call centre support Direct marketing strategy comprising of internet marketing and other channels Pioneering new and exciting initiatives Example : Halfshare.com specializes in the shared ownership of luxury vacation properties throughout North America. They help buyers find their ideal vacation property or Vacation Home while matching them with the right co-owner through a Buyer Match Plan
  • 15. Key Success Factors Continuous inventory acquisition by a dedicated team Dedicated team to scout for projects under development, completed projects, re-sale inventory Acquisition could be followed by Re-packaging the real estate to make it more appealing to the target buyer Sound Real Estate Knowledge Base Ability to track trends and assess impact for HNIs Ability to give a wealth management perspective and offer Good Service Quality Training & People development to offer good service experience Personalized service to HNIs/NRIs Robust processes for transaction management Strong performance management system
  • 17. Call Sapphirez: Rajjeet Chandra Mobile : +91 9867974602 Email : rajjeet@sapphirez.co.in