The document discusses the market for second homes and vacation properties internationally and in India. It provides an overview of the different types of vacation property ownership models including vacation homes, timeshares, vacation rentals, and vacation exchanges. It then analyzes key drivers of demand for vacation homes internationally and in different countries. Finally, it profiles the target consumer segments in India, primarily HNIs and NRIs, and outlines the key success factors for players in the Indian vacation home market focusing on direct marketing, continuous inventory acquisition, real estate knowledge, and service quality.

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