NEW HORIZONS

With the pandemic underscoring the importance of wellness and spending quality time with friends and family, purchases of vacation homes are seeing a new high. Experts share the lowdown on the due diligence to exercise before embarking on such an investment

- Sandhya Mahadevan

In 1623, Louis XIII, the King of France took a fancy to a small commune in the western suburbs of Paris called Versailles and built a hunting lodge there. His successor, Louis XIV, turned it from the chateau it had subsequently become into the Palace of Versailles, now one of the country’s most popular tourist attractions. The famed castle is also believed to be the earliest example of a holiday home.

The idea of a recreational residence has seen many iterations since then, spurring not only the demand for vacation retreats but also the notion of an abode its owner could rent out to visitors and digital nomads. Furthermore, as borders open up, the thirst for “revenge travel” has come to the forefront. The jet-set are eagerly returning to their old ways, making up for the years spent being primarily home-bound; this has, in turn, sparked a demand for pieds-à-terre abroad they can now visit with ease.

According to Sotheby’s International Realty’s 2023 Luxury Outlook report, the luxury second-home market saw a boom even during the pandemic years. Tammy Fahmi, senior vicepresident of global servicing and strategy at Sotheby’s International Realty reveals that the toss-up has since been between lifestyle versus financial considerations.

Victoria Garrett, Asia-Pacific head of residential at Knight Frank agrees. “Purchasing a second home used to be largely viewed as a financial investment. But that perception is evolving to amalgamate financial investment with your version of paradise,” she explains.