Lonavala, a hill station accessible from both Mumbai and Pune, is popular with homebuyers including NRIs, looking to invest in second homes, especially villas.
Lonavala, a hill station located 100 km from Mumbai and 60 km from Pune, is one of the most frequented hill stations during the weekends, especially during the monsoon and winters. According to real estate experts, June is an important month for the real estate sector in the area as buyers start registering second homes during the monsoon season.
Lonavala is primarily a second home destination and is popular among people wanting to invest in villas, farmhouses or bungalows. Majority of the second homebuyers in Lonavala are from Mumbai, Pune and Gujarat. Several Non-Resident Indians (NRIs) have also invested in the area. These buyers generally visit the area during the monsoon and in winters to close the deal, said local brokers.
The hill station was in the news recently after at least five individuals from Pune drowned at a water body near Bhushi dam in Lonavala.
The district administration has taken strict steps in the wake of the accident and ordered a curfew for tourists after 6 pm in Maval and Sinhagad areas along with Lonavala.
Also read: Goa real estate market: Young professionals are now investing in villa properties due to attractive rental yields
Villas, land - what sells the most in Lonavala?
Majority of the transactions in Lonavala comprise ready-to-move-in villas followed by bare-shell villas and land.
"Maximum deal closures are that of ready-to-move-in villas (50%), as many as 30% deals are that of bare shell villas and 20% comprise land deals. The second home market is now also a first home market. Around 20-30% enquiries are from people who are looking to shift permanently. For this, the key requirement is high-speed Internet, housekeeping, and a health facility nearby," said Chintan Vasani, partner at Wisebiz Nyasa Developments, whose company is planning to launch a villa project in the coming months.
"The per sq ft rate of villas in Lonavala can go up to ₹15,000 per sq ft and 3-4 BHK villas and serviced apartments are available in the range of ₹2 crore and 3 crore. The rental yield is around 10%-15%,” he said.
Who are the second home buyers in Lonavala?
Second home buyers in Lonavala are primarily NRIs from Mumbai and Pune. More than 5,000 transactions of second homes are reported in Lonavala every year, according to consultants and brokers dealing in properties in the hill station.
"The second home buyer profile is mixed but many are from the creative industry, NRIs, retired, people close to retirement. There are a few lease deals but the majority of the deals are outright purchases," Ravi Kewalramani, director at RK Mumbai Realtors, whose firm deals in the second homes market in Lonavala.
"There are healthy enquiries for second homes in Lonavala and closures take about three to six months. However, there have been fewer closures over the last few months. This is the case not just in Lonavala but in other second holiday home destinations as well. April to June is the peak season for deal closures in the area,” said Kewalramani.
How to reach Lonavala?
Lonavala is accessible by road, rail and bus from both Mumbai and Pune.
Bollywood stars who have invested in second homes in Lonavala
Bollywood actor Dharmendra owns a farm house spread across 100 acres near Pawna lake, 20 km near Lonavala. Salman Khan also owns a farm house in Panvel which is 50 km from Lonavala. Sunil Shetty owns a second home in Khandala, about 4 km from Lonavala.
Several other destinations like Goa, Alibaug, Igatpuri, Karjat also attract a lot of attention from the Bollywood industry for investing in property. For example, Suhana Khan- daughter of Shahrukh Khan owns land in Alibaug.