Second Homes Or Vacation Homes

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Second Homes Or Vacation Homes

  1. 1. SAPPHIREZ ASSET SOLUTIONS Market for Second Homes
  2. 2. Live your Dreams
  3. 3. <ul><ul><li>Segmentation of Vacation Home market internationally </li></ul></ul>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. 4. International Demand Drivers <ul><li>Economy </li></ul><ul><li>Population </li></ul><ul><li>Propensity to spend </li></ul><ul><li>Income Levels </li></ul><ul><li>Rate of borrowing </li></ul><ul><li>Growth rate </li></ul><ul><li>Attracting investment </li></ul><ul><li>Government Initiatives </li></ul><ul><li>Conferences </li></ul>Baby Boomers Interest Rates <ul><ul><li>Key movers of the Vacation Home market </li></ul></ul>Tourism
  5. 5. Vacation Homes-Internationally Source: National Association Of Realtors 2006 Tennis Golf <ul><li>Key Learning's: </li></ul><ul><li>Internationally activities are critical aspects of Vacation Homes </li></ul><ul><li>Brokers / real estate agents play a critical role as channel partners </li></ul><ul><li>Locational advantage needs to be broadcast for individual property </li></ul>
  6. 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. 7. US Vacation Home Market <ul><li>International Vacation Home market is maturing and seeing considerable growth </li></ul><ul><li>The US$ 13 billion Vacation Home industry in US is 0.10% of GDP as of 2005 </li></ul><ul><li>Multiple players having unlimited product offerings </li></ul><ul><li>GDP of US playing an integral role for burst of Vacation Home industry </li></ul>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. 8. <ul><li>Given the current economic trends we can draw the following hypothesis: </li></ul><ul><li>- The Size of the Vacation Home industry is approximately US$ 0.757 billion or INR 34,150 Crore </li></ul><ul><li>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 </li></ul>India Vacation Home <ul><li>Generation X will boost the growth of Vacation Homes in India </li></ul><ul><li>India the next growth driver for international companies </li></ul>0.05 % 0.08 % 0.10 %
  9. 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. 10. Affluent Map Of India <ul><li>Predominantly luxury consumers reside in the north and west </li></ul>Source: Technopark
  11. 11. Vacation Home : Snapshot <ul><li>Vacation Home </li></ul><ul><ul><li>100-200 kms from metros around a natural attraction primarily hill stations, beaches </li></ul></ul><ul><ul><li>International Vacation Homes in Dubai, London etc. </li></ul></ul><ul><li>Customers </li></ul><ul><ul><li>HNIs & NRIs </li></ul></ul><ul><li>Initial Value Proposition </li></ul><ul><ul><li>Variety & convenience of one stop shop </li></ul></ul><ul><li>Sustainable Value Proposition </li></ul><ul><ul><li>Needs based development </li></ul></ul><ul><ul><li>Reach & access to NRIs </li></ul></ul><ul><ul><li>Destination development and marketing </li></ul></ul>
  12. 12. Indian HNI : Primary Target <ul><li>Products </li></ul><ul><li>Vacation Home </li></ul><ul><li>Purchase/Lease of Commercial </li></ul><ul><li>Investment in Real Estate Funds/ REITs </li></ul><ul><li>Competitive Landscape </li></ul><ul><li>Wealth Managers proffering Equity & Debt instruments </li></ul><ul><li>Dedicated sales team representing high value assets </li></ul><ul><li>Advertising & PR by builders & marketers </li></ul><ul><li>Needs </li></ul><ul><li>Prestige, Ego Value </li></ul><ul><li>High Service Quality </li></ul><ul><li>Large portfolio of options </li></ul><ul><li>Customized Advisory </li></ul><ul><li>Relationship Building </li></ul><ul><li>Credibility & Accountability </li></ul><ul><li>Opportunities </li></ul><ul><li>Convenience of one stop shop for real estate needs </li></ul><ul><li>Advice rather than push </li></ul><ul><li>Broaden the horizon to look at new emerging opportunities like equity involvement </li></ul><ul><li>Wealth Management perspective </li></ul>
  13. 13. NRI : Secondary Target <ul><li>Products </li></ul><ul><li>Vacation Home </li></ul><ul><li>Equity investment in Commercial , Hotel Real Estate Development </li></ul><ul><li>Competitive Landscape </li></ul><ul><li>Wealth Managers proffering Equity & Debt instruments </li></ul><ul><li>Dedicated sales team representing high value assets </li></ul><ul><li>Needs </li></ul><ul><li>High Service Quality </li></ul><ul><li>Large portfolio of options </li></ul><ul><li>Customized Advisory </li></ul><ul><li>Relationship Building </li></ul><ul><li>Credibility & Accountability </li></ul><ul><li>Opportunities </li></ul><ul><li>Convenience of one stop shop for real estate needs </li></ul><ul><li>Advice rather than push </li></ul><ul><li>Broaden the horizon to look at new emerging opportunities like equity involvement </li></ul><ul><li>Reach to micro-segments </li></ul>
  14. 14. Key Success Factors <ul><li>Direct Selling & Marketing for HNIs, NRIs </li></ul><ul><ul><li>Dedicated sales and service team for HNIs / NRIs </li></ul></ul><ul><ul><li>Dedicated processes and systems to manage service & sales issues </li></ul></ul><ul><ul><li>Dedicated telemarketing & call centre support </li></ul></ul><ul><li>Direct marketing strategy comprising of internet marketing and other channels </li></ul><ul><li>Pioneering new and exciting initiatives </li></ul><ul><ul><li>Example : Halfshare.com specializes in the shared ownership of luxury vacation properties throughout North America. </li></ul></ul><ul><ul><ul><li>They help buyers find their ideal vacation property or Vacation Home while matching them with the right co-owner through a Buyer Match Plan </li></ul></ul></ul>
  15. 15. Key Success Factors <ul><li>Continuous inventory acquisition by a dedicated team </li></ul><ul><ul><li>Dedicated team to scout for projects under development, completed projects, re-sale inventory </li></ul></ul><ul><ul><li>Acquisition could be followed by </li></ul></ul><ul><ul><ul><li>Re-packaging the real estate to make it more appealing to the target buyer </li></ul></ul></ul><ul><li>Sound Real Estate Knowledge Base </li></ul><ul><ul><li>Ability to track trends and assess impact for HNIs </li></ul></ul><ul><ul><li>Ability to give a wealth management perspective and offer </li></ul></ul><ul><li>Good Service Quality </li></ul><ul><ul><li>Training & People development to offer good service experience </li></ul></ul><ul><ul><li>Personalized service to HNIs/NRIs </li></ul></ul><ul><ul><li>Robust processes for transaction management </li></ul></ul><ul><ul><li>Strong performance management system </li></ul></ul>
  16. 16. Live your Dreams
  17. 17. Call Sapphirez: Rajjeet Chandra <ul><li>Mobile : +91  9867974602 </li></ul><ul><li>Email : rajjeet@sapphirez.co.in </li></ul>

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