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Kolkata: Buying a home is a passion for most. Shankesh Sanghvi, managing director of Sanghvi Realty tells us that buying a second home can be a financial cushion. He also tells us that it is going to be a trend in 2026. Sanghvi's logic: Economic volatility over the last few years has changed how people think about security and traditional avenues such as equity markets and/or business income are subject to volatility. Against that backdrop the significance of a second dwelling unit as an income-generator could be viewed.
"Traditional emergency funds, equity markets, or even business income can fluctuate sharply. Real estate, especially a well-located second home, offers something different: stability, optional liquidity, and the ability to generate income when needed. That’s why second homes are increasingly being viewed as emergency financial cushions rather than indulgent purchases," Sanghvi emphasises.
Rental yields, resale and long-term capital appreciation are the biggest attractions of a second home. And this has gone beyond mere hypothesis and Sanghvi points to emerging data. "According to industry projections, the Indian second-home market would be worth USD 4 billion by 2026, mostly because of upper-middle-class and high-net-worth individuals buying homes. A lot of these buyers aren't just buying for fun; they're also thinking about rental yields, resale prospects, and long-term capital appreciation when they make their choices," he points out.
Rental income plays a big role here. Second homes can bring in 4–8% in rent per year, especially when rented out for short periods of time in regions with a lot of tourists, good transit, or increasing infrastructure. At a granular level, the income from rent of the second home can help the owner to pay EMIs or other household bills when cash flow is otherwise tight. "This also helps one to preserve long-term investments," he points out.
Most are emotionally connected with the first home ie, the home they live in. But people usually don't have the same connect with second homes. And this opens up a whole lot of opportunities, says Sanghvi. "A second home with lower emotional dependency compared to a primary residence becomes a more flexible asset—one that can be monetized, leased, or even sold if required, without disrupting everyday living," he says.
The Sanghvi Realty MD thinks the trend is becoming increasingly more mature and strategic. "As we get into 2026 and beyond, people are likely to see second homes less as luxury items and more as flexible investments—something that provides you emotional value when things are going well and financial stability when things are unclear. This change is part of a bigger change in how Indians think about money, safety, and planning for the future," asserts Sanghvi.
This trend can also be attributed to lifestyle changes in the post-Covid era. Sanghvi thinks many people now spend extended periods in their second homes, effectively converting them into productive living spaces. "This dual usage strengthens the case for second homes as both lifestyle assets and financial buffers," he quips.
