New Delhi, April 7: Propdial, a Gurgaon based prop-tech startup that helps NRIs and Indians living in other cities manage properties from a distance, forays into fast emerging 2nd Home shared ownership space.
A growing income of Indian professionals and a larger interest to invest in alternate properties is bringing back a lot of demand for 2nd Home Ownership. However, these people are not just looking to own ‘another’ property, but they want to own ‘smart’ property that can create more value and higher satisfaction of owning it while being part of such a closely knitted community.
These professionals cum Investors are well networked and quite aware of Global space, and with technology, at play, they want a similar ownership model for Indian shared Home Ownership space. The NRI’s are further boosting this demand, willing to invest back in their Home country.
To summarise, here are a few key asks from a new breed of second homeowners and how this space is rapidly evolving:
- 2nd Home Ownership has become an Aspirational & Lifestyle need, for example, owning a Big/ Luxury Property at Beach, Mountain, Religious location than just owning another property
- Aspirational Properties are the large ticket, not possible to own fully – it requires some innovative solution and hence an opportunity to build big
- 2nd Home Owners want their properties to provide recurring returns, self-usage on demand along with capital appreciation than becoming a liability to own & manage
- 2nd Home Owners want to use their as well other community member’s property on demand and on a swap basis without worrying about how to keep it warm and functioning
To address the above, there is a clear need to redefine the 2nd Home Ownership space with technology, domain expertise, and operational excellence. This includes:
- Shared Ownership – Rather than owning 100%, there would be a provision to own a fraction (share) of it and so large ticket property will be comfortably owned by a small group (2-10 people)
- Full lifecycle management of Property – Propdial will manage the complete life cycle of property ownership – acquisition, legal, and operational.
- Self-Usage (Personal Stay / Luxury Vacation) – 6-8 weeks per year of personal vacation at your managed property with pride of ownership. Member can also swap property usage with other property at the same or different location.
- ROI –Propdial will use various channels to earn rental incomes for the period when the property is not in use, and earnings will be distributed in proportion to owners. Also, if needed, exiting/selling an individual’s share will be facilitated by the platform.
While drawing a similar comparison, Propdial is building Pacaso of India with Desi flavour and taking first-mover advantage in this space.
“Aspirational second home shared ownership is a large market opportunity and proven model in US and Europe markets. We are addressing the growing aspiration of the Indian as well NRI community to offer such an option for the Indian market,” said Vinay, co-founder and CEO.
We have done an internal survey with our existing Clients (property owners) whose properties are managed by Propdial. There is a huge interest and willingness to be part of shared ownership model among them, especially NRI Clients, said Gopal, co-founder and COO.