Hide Notes 

Slide 1: SAPPHIREZ ASSET SOLUTIONS Market for Second Homes
Slide 3: Understanding – Vacation Home Vacation Ownership Property owned generally for personal use Timeshare A timeshare is a form of vacation property ownership. The use and costs of running the resort are shared among the owners Vacation Rentals Renting out a furnished apartment or house on a temporary basis to tourists as an alternative to a hotel Vacation Exchange You trade your interval or week for new and different vacation experiences at comparable resorts across the country and around the world Segmentation of Vacation Home market internationally
Slide 4: International Demand Drivers Baby Boomers  Economy  Population  Propensity to spend Interest Rates  Income Levels  Rate of borrowing     Tourism Growth rate Attracting investment Government Initiatives Conferences Key movers of the Vacation Home market
Slide 5: Vacation Homes-Internationally Leisure Ac tivities Pref erred Tennis 9% 10% Mode Of Purchase F or A Vacation Home 14% 5% 29% 18% Golf 11% 20% Real Estate Owners 68% 16% Builders Water Sports Boating Hunting/Fishing Golf Biking/Hiking Skiing Tennis D esirable Attributes In A Vacation Home 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 for individual property 22% 18% 38% 22% Close To Ocean/Lake/River Close To Resort Ares Sporting Activities Mountains/Natural Destinations Source: National Association Of Realtors 2006
Slide 6: Vacation Home Buyers: International Distance (Miles) 25 25-99 100-199 200-499 500-999 1000-1499 1500 and more Median Distance * Less than 1 % Vacation Home % 44 19 22 1 3 * 10 49 Investment Property % 69 9 5 * 3 6 8 18 Distances between residence & Vacation Home Usually less than 100 miles Home Size (Sq.ft) 500 501-1000 1001-1500 1501-2000 2001-2500 2501-3000 3000 and more Median Size Vacation Home % 4 14 56 11 9 5 1 1290 Format Studio 1 BDR 2 BDR 3 BDR Investment Property % 1 14 22 31 12 10 10 1700 California Coastal 600 590 480 NA 50-150 South Florida 600 600 600 NA 50-300 Golf Destinations 700 550 450 400 50-150 Ski Destinations NA 550 580 600 50-100 Size of home : 1000-1500 sqf Average value per sq.ft Premiums ($ 000) Source: Economic Realtors Research
Slide 7: US Vacation Home Market • GDP (In Billion USD) 14000 12000 10000 8000 Vacation home Industry (In Billion USD) 14 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 0.10 % 12 10 8 • 0.08 % 6000 4000 2000 0 1990 2000 2005 6 • • 0.05 % 4 2 0 Vacation Home market is growing @ 9.7% worldwide & @ 14% in U.S Along with high growth rates comes heightened competition Brands would soon start at exploiting other geographies
Slide 8: India Vacation Home • GDP (In Billion USD) 900 800 700 600 500 0.4 400 300 200 100 0 1990 2000 2005 Vacation home Industry (In Billion USD) 0.8 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 0.10 % 0.7 0.6 0.5 0.08 % 0.3 0.2 • 0.05 % 0.1 0 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 • Generation X will boost the growth of Vacation Homes in India •India the next growth driver for international companies
Slide 9: Indian Luxury Consumer: HNI Married and has kids Average age = 36-40 CWE= Mostly Male 42% live in joint families Residing in posh localities 35% of wives working Owns D/E segment car 44% traveling abroad for vacation, at least once a year Disposable income 9 lac p.a
Slide 10: Affluent Map Of India Predominantly luxury consumers reside in the north and west Source: Technopark
Slide 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
Slide 12: Indian HNI : Primary Target Products • • • Vacation Home Purchase/Lease of Commercial Investment in Real Estate Funds/ REITs Needs • Prestige, Ego Value • High Service Quality • Large portfolio of options • Customized Advisory • Relationship Building • Credibility & Accountability Competitive Landscape • • • Wealth Managers proffering Equity & Debt instruments Dedicated sales team representing high value assets Advertising & PR by builders & marketers 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
Slide 13: NRI : Secondary Target Products • • Vacation Home Equity investment in Commercial , Hotel Real Estate Development Needs • High Service Quality • Large portfolio of options • Customized Advisory • Relationship Building • Credibility & Accountability Competitive Landscape • • Wealth Managers proffering Equity & Debt instruments Dedicated sales team representing high value assets 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
Slide 14: Key Success Factors • Direct Selling & Marketing for HNIs, NRIs – Dedicated sales and service team for HNIs / 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 exciting initiatives – 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
Slide 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
Slide 17: Call Sapphirez: Rajjeet Chandra Mobile : +91 9867974602 Email : rajjeet@sapphirez.co.in