Second Homes or Vacation Homes Category and its development in US & India

1. SecondHomes
Market for Second Homes

3. Segmentation of Vacation Home market internationally
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 owne
Vacation
Rentals
Renting out a furnished apartment or house on a temporary basis t
tourists as an alternative to a hotel
Vacation
Exchange
You trade your interval or week for new and different vacation experie
at comparable resorts across the country and around the world
Understanding – Vacation Home

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
Desirable Attributes In A Vacation Home
38%
22%
22%
18%
Close To Ocean/Lake/River Sporting Activities
Close To Resort Ares Mountains/Natural Destinations
Leisure Activities Preferred
29%
20%
16%
11%
10%
9%
5%
Water Sports Boating Hunting/Fishing Golf Biking/Hiking Skiing Tennis
Tennis
Mode Of Purchase For A Vacation Home
68%
18%
14%
Real Estate Owners Builders
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
Distance (Miles) Vacation Home % Investment Property %
25 44 69
25-99 19 9
100-199 22 5
200-499 1 *
500-999 3 3
1000-1499 * 6
1500 and more 10 8
Median Distance 49 18
* Less than 1 %
Home Size (Sq.ft) Vacation Home % Investment Property %
500 4 1
501-1000 14 14
1001-1500 56 22
1501-2000 11 31
2001-2500 9 12
2501-3000 5 10
3000 and more 1 10
Median Size 1290 1700
Format California Coastal South Florida Golf Destinations Ski Destinations
Studio 600 600 700 NA
1 BDR 590 600 550 550
2 BDR 480 600 450 580
3 BDR NA NA 400 600
Premiums ($ 000) 50-150 50-300 50-150 50-100
Distances between residence & Vacation H
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 industry0
2000
4000
6000
8000
10000
12000
14000
1990 2000 2005
0
2
4
6
8
10
12
14
GDP (In Billion USD) Vacation home Industry (In Billion USD)
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
• Generation X will boost the growth of Vacation Homes in India
•India the next growth driver for international companies
0
100
200
300
400
500
600
700
800
900
1990 2000 2005
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
GDP (In Billion USD) Vacation home Industry (In Billion USD)
0.05 %
0.08 %
0.10 %
India Vacation Home

9. 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
Indian Luxury Consumer: HNI

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. Contact Us
• Sarvajeet Chandra
+91 9920803060,sarvajeet@theadiva.com,
sarvajeetchandra@gmail.com
• Visit Us at www.mastersungroup.com