Second Homes Or Vacation Homes

• 1. SAPPHIREZ ASSET SOLUTIONS Market for Second Homes

2. Live your Dreams 3.

• • Segmentation of Vacation Home market internationally

Understanding Vacation HomeVacationOwnership Property owned generally for personal useTimeshare A timeshare is a form of vacation property ownership.The use and costs of running the resort are shared among the owners VacationRentals Renting out a furnished apartment or house on a temporary basis totourists as an alternative to a hotel VacationExchange You trade your interval or week for new and different vacation experiencesat comparable resorts across the country and around the world 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-InternationallySource: National Association Of Realtors 2006 Tennis 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 forindividual property

6. Vacation Home Buyers: International Distances between residence & Vacation Home 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 industry

Vacation Home market is growing @ 9.7% worldwide & @ 14% in U.S Along with high growth rates comes heightened competitionBrands would soon start at exploiting other geographies0.05 % 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

India Vacation Home

• Generation X will boost the growth of Vacation Homes in India

• India the next growth driver for international companies

0.05 % 0.08 % 0.10 % 9. Indian Luxury Consumer: HNI Disposable income 9 lac p.a Owns D/E segment car Residing in posh localities Average age = 36-40CWE= Mostly MaleMarried and has kids42% live in joint families 35% of wives working 44% traveling abroad for vacation,at least once a year 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

• Equityinvestment inCommercial , 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 & Marketingfor HNIs, NRIs

• • Dedicated sales and service team forHNIs / 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 excitinginitiatives

• • 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

16. Live your Dreams 17. Call Sapphirez: Rajjeet Chandra

• Mobile :+91 9867974602

• Email: rajjeet@sapphirez.co.in