Co-ownership of holiday homes is finding takers in India and democratising the luxury market segment

For generations, villas in sleepy seaside towns and cottages in remote hill-stations lay vacant for most of the year. Only the affluent could afford this luxury, requiring sizeable investment and extensive maintenance — all for an average stay of 40 days a year. Common sense informs that these homes do better when shared.

In 2020-21, the pandemic made us restless for safe places outside metros. Suddenly, a holiday home became the need of the hour. Players started entering the market with models that empowered people to co-own their second home. These tech-savvy entrepreneurs with considerable experience in hospitality, financing and real estate have begun democratising the luxury holiday home space with affordable smart-ownership models that maximise usage, give rental returns and long-term investment.

Abroad, fractional ownership is well established. Popular companies like Pacaso in the U.S. and Altacasa in Europe promote second homes, citing responsible buying, ease of process, the advantage of a large home that’s affordable, stress-free ownership as the property is fully managed, and the idea of ‘going home to a familiar community with your pet, family and friends’.

In India, co-ownership is a concept whose time has come. Unlike a timeshare membership, your money goes into a tangible asset that is likely to grow. The property is bought via a Special Purpose Vehicle (SPV) and each individual owner buys a share in the home, with all legal paperwork completed. Each share you buy gives you 30 to 45 days a year that is spread out. You can rent out your share if you aren’t going to use it, and accrue income from short-term leasing — three times more than long-term rental. All this in a home that’s taken care of by the management firm, from housekeeping and maintenance to grocery shopping, pick-ups and arranging a birthday party.

YOURS Second Homes, Bengaluru

The master bedroom at YOURS Fonteira, a luxurious 3-bedroom with 3.5 baths and private pool, in Assagao, Goa. Valued at ₹1.40 crore per share.
| Photo Credit:
YOURS Second Homes

The genesis behind YOURS crystallised during the pandemic. Co-founders Shravan Gupta and Sudeep Chandran found most people spent only 25 days a year in their vacation homes, while saddled with maintenance and upkeep. With Gupta’s background in travel and Chandran’s deep experience in real estate, building and construction, and other partners, they launched YOURS in December 2021. In a conservative market, educating the client and creating brand awareness has paid off. Gupta says, “Most of our clients who have bought a share in one property, come right back and invest in another one. You can sell it back, or to a friend later, and YOURS will facilitate the sale calculated at market price.”

The YOURS team is bullish about finding the right ready-to-buy home. From Goa to Alibaug and the Nilgiris, they look for that wow factor — location, view, architecture and community. Interestingly, less-accessible regions emerged as growing markets for luxury homes with evolving commerce and transport. Says Gupta, “The RO-RO (roll in-roll out) ferry service in Mumbai has been a game-changer. People can ferry across to Alibaug from Mumbai in less than an hour, making a weekend trip easy. Just like the upcoming Mopa International Airport has accelerated Goa’s market, the property prices have gone up in Alibaug, and a three or four bedroom property can be ₹8 to ₹10 crores.” With an eye for detail, their unique luxury homes have tasteful interiors and landscaping such as at YOURS Fonteira, a Portuguese-inspired gated community in Assagao, Goa. YOURS’ app allows you to reserve up to two years in advance, as well as book for all services.

ALYF, Mumbai

ALYF’s Casa Belle Vue, a six-bedroom Goan-Portuguese style home facing the river in the village of Ribandar near Panjim, Goa. Valued at 
₹2.12 crore per share.

ALYF’s Casa Belle Vue, a six-bedroom Goan-Portuguese style home facing the river in the village of Ribandar near Panjim, Goa. Valued at
₹2.12 crore per share.
| Photo Credit:
ALYF

Saurabh Vohara moved to Mumbai when the second wave of the pandemic hit. Scrunched up in a small flat, Vohara’s own desire to get away led him to seed a holiday homes model. Vohara, earlier business head at NoBroker, partnered with Karan Chandiok to launch ALYF, a Mumbai-based PropTech company, in June 2022. Vohara says, “With ownership in the name of a private limited company, and a fully tech-enabled platform, you get a seamless entry and exit — the buyer just needs to do a share transfer. Further, there are no legal compliances while selling, such as registration, etc.”

ALYF’s is an asset-light model. They work with a mandate, i.e. they put down a percentage, select the right property and close the loop with buyers in about three to six months.

The demand is high, but as Vohara asserts, “The bigger problem is finding the right home at the right location for the right price. We have 10 to 12 stringent parameters while finalising a property — legal checks, construction quality, builder background, amenities and the community among others. In Lonavala, after scouting around 300 properties, we picked only 10. We are following the same process for Goa and Alibaug as well.”

ALYF’s robust approach uses in-depth data and trends analyses to determine the best value proposition for buyers. ALYF’s app launching in January will support their intuitive operations management. Vohara predicts the $2 billion vacation home market growing to a $10-billion-dollar market in the next three to five years.

BRIKitt, Lucknow

MVR Casa Aurea, a 3BHK villa in Siolim, Goa, valued at ₹32.43 lakh per share.

MVR Casa Aurea, a 3BHK villa in Siolim, Goa, valued at ₹32.43 lakh per share.
| Photo Credit:
BRIKitt

“About 70% of the holiday budget goes into accommodation,” says Mayur Raj Kapoor, CEO of BRIKitt, who co-founded the PropTech firm in 2020 with his wife Swati Raj Kapoor, and Aakash Dhillon. The Kapoors, who are fond of vacationing, had a trail of unfulfilling experiences concerning lack of hygiene and standardisation at BnBs. Their vision was about making a community-driven platform for people who can co-own and exchange their vacation homes.

In India you cannot register a property with more than four co-owners, so an SPV is a transparent, functional and viable way of getting five to 11 owners on board. BRIKitt has both apartments and villas in their portfolio. For instance, at BRIKitt’s project at TATA Housing, an owner gets 30 nights a year. You can stay a minimum of two nights and a maximum of seven at a stretch. NRI clients who come for a month or two, can buy four or more BRIKS to stay one month. A personalised dashboard lets every BRIK owner track investment growth, book and exchange their vacation days. This ensures complete transparency by tracking transactions on a real-time basis. For young professionals, they offer affordable units from ₹6 to 7 lakhs, going up to ₹50 lakhs for each fraction.

With properties across North, East and West India, Kapoor says, “Your second home should be a place where you enjoy going again and again. Staying at Kasauli, you can travel the entire Himachal — from Kufri, Solan and Chail to Shimla.” Likewise, BRIKitt properties are strategically located in Central and North Goa (Siolim and Baga), so owners can enjoy the entire region.

Sharing living spaces

Share your home? We may say, ‘Never!’, but look back at the Indian joint family and our flexible temperament for sharing homes, and this does not sound so far-fetched. The pandemic also ushered the trend of ‘work from anywhere’ with wi-fi enabled set-ups, encouraging hybrid models for the industry. While previous generations may fret about the cons of entering a home used by others, sustainable co-ownership — which lets you own, earn, share and appreciate — is here to stay.

The writer is a brand strategist with a background in design from SAIC and NID.

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