Retirement planning in India is shifting from savings-focused to lifestyle-focused. Today’s retirees are redefining what it means to grow older and “second homes” are at the heart of this retirement trend.
From scenic hills to coastal retreats, more Indians are investing in lifestyle-driven second homes well before they retire.
In this blog, you’ll discover why second homes are redefining retirement, popular second home locations, and how Rustomjee is crafting spaces that truly feel like home.
Why Second Homes Make Sense for Retirement Planning
When it comes to smart retirement planning, second homes are emerging as a truly practical choice. Here’s why this retirement trend is becoming increasingly popular:
- Dual Purpose: Investment & Future Residence
Second homes pull double duty. They act both as an investment today and a comfortable retirement residence tomorrow.
- Early Purchase = Better Returns
Buying a second home early (often in your 40s or 50s) allows you to benefit from property appreciation.
- Location Flexibility
Retirees can select environments that match their lifestyle, whether it’s the serenity of hill stations, the vibrancy of coastal towns, or the convenience of integrated townships. Rustomjee’s thoughtfully planned projects, such as Rustomjee Belle Vie, offer prime locations with a blend of nature and amenities.
- Tax Benefits
Investing in a second home offers significant tax advantages. You can claim:
- Up to ₹1.5 lakh deduction on the principal repayment under Section 80C.
- Up to ₹2 lakh on interest payment under Section 24(b). These deductions reduce overall tax liability, which is vital for retirees managing limited incomes.
- Better Property Appreciation
Buying early allows you to benefit from long-term price appreciation, especially in emerging second-home locations.
- Stronger Financial Returns
Early investment means lower entry prices and higher returns over time. Buying early not only offers better property appreciation but also ensures stronger financial returns over time.
- Regular Rental Income
Many pre-retirees even generate rental income from these homes while they’re still working, easing their financial journey.
Read Also: Luxury Living: Mumbai’s Premium Properties vs Delhi-NCR’s Premium Developments
Popular Second Home Locations for Future Retirees
Here are some of the most preferred second home locations that are catching the eye of Indian retirees in 2025:
Beachfront Properties
Beachfront destinations are gaining momentum. Projects like Rustomjee Elements – Dahanu offer luxury villas just minutes from the beach. This combines nature, comfort, and a calm pace of life.
Additionally, Rustomjee developers offer beachfront properties in Versova, Mumbai, with their Rustomjee Ocean Vista project. It is a 24-story tower on the site of the former Sagar Tarang apartment building. This project aims to offer you sea-facing apartments. Rustomjee also has other properties in Maharashtra, including Rustomjee Ashiana in Juhu.
Hill Stations
If you’re seeking pleasant weather and green surroundings, properties in these areas are a perfect choice. These spots promise peace, cleaner air, and a natural detox for city-weary retirees.
Rustomjee offers multiple hillside properties. It primarily focuses on luxury apartments in areas like Pali Hill (Bandra West) and Kasara Hills. These projects often feature spacious apartments, amenities, and panoramic views. For example: Rustomjee Parishram & Rustomjee Panorama in Pali Hill and Rustomjee Belle Vie (Kasara Hills).
Township Developments
Integrated townships provide gated communities with comprehensive amenities, healthcare, and security. Rustomjee’s integrated townships, like Rustomjee Urbania in Thane, offer exactly this. You get healthcare spots in close proximity, parks, senior-friendly walkways, meditation zones, and community spaces.
Suburban and Wellness-Focused Locations
Here are a few standout Rustomjee projects that cater specifically to suburban and wellness-focused lifestyles:
- Rustomjee Uptown Urbania – Thane (West)
Located in one of Mumbai’s most promising suburban zones, Uptown Urbania is designed for those who value calm, connectivity, and community.
It has open greens, walking tracks, a senior-friendly clubhouse, and proximity to top-tier hospitals and wellness centers.
It’s perfect for retirees seeking a stress-free lifestyle without moving too far from city comforts.
- Rustomjee Global City – Virar
It is a self-sustained township with a focus on community living. This suburban project is ideal for retirees looking for open spaces, recreational areas, and access to essential services, including healthcare, grocery, and fitness.
The project spans over 200 acres and promotes walkable living with landscaped gardens and ample wellness zones.
- Rustomjee 180 Bayview – Dahanu (Upcoming)
It is positioned along the tranquil coastline of Dahanu. This project is a sanctuary for those who want wellness inspired by nature. This project will offer sea-facing residences, yoga decks, and wellness amenities.
Emerging Destinations
Emerging destinations for second homes among future retirees include Kasara Hills, Pali Hill, Dombivli, Thane, and upcoming Tier 2 cities.
Financial Strategies for Second Home Retirement Planning
Here are the key strategies Indian retirees are following in 2025 to make the most of their second home investment:
- Create a Realistic Timeline
Start 5–10 years before your planned retirement. Most buyers invest in second homes between the ages of 45 and 55. This allows time for regular EMI payments, appreciation of property value, and emotional transition.
- Explore Financing Options
Home loans, specifically for second properties, often come with slightly higher interest rates. Look for lenders offering special pre-retirement plans with flexible EMIs and longer tenures.
Rustomjee, in partnership with leading banks, provides guided loan assistance for second home buyers. Additionally, use rental yields to offset loan repayments or maintenance costs.
- Calculate Rental Yield
Renting out your property until retirement can generate income and offset EMIs.
- Research Market Trends
The second home market in India is growing at 10-12% annually, driven by rising disposable incomes and dual-income households.
By 2025, India’s senior population will reach 173 million, with a growing demand for retirement-friendly housing.
Thus, track appreciation rates, infrastructure growth, and demand.
- Plan for Tax & Investment Benefits
Second homes can offer tax deductions under Section 24(b) and 80C. Consult a financial planner to align your second home investment with your retirement corpus goals.
Read Also: The Role of Location in Choosing Your Dream Home: Why Dombivli Matters
Ideal Property Types for Retirement Second Homes
| Property Type | Key Benefits | Rustomjee Projects That Fit This Criteria |
| Apartments in Gated Communities | 24/7 security & surveillance
Clubhouse, fitness, wellness, and recreation amenities |
Rustomjee Urbania (Thane) is an integrated township with modern apartments and rich community features. |
| Villa Plots | Custom-built for retirement needs
Privacy, open space, and personal gardens |
Rustomjee Gagal Home Bayview (Dahanu) will offer quiet coastal plots ideal for retirement with scenic backdrops. |
| Managed Communities | Professional property maintenance
Access to nearby healthcare & emergency services |
Rustomjee Seasons (BKC) provides concierge services, proximity to top healthcare centres and senior-friendly amenities |
| Township Developments | All-in-one living: shopping, healthcare, social spaces
Strong community engagement |
Rustomjee Global City (Vasai) is a self-sustained township ideal for second home seekers with retirement in mind. |
| Retirement-Friendly Designs | Step-free access, wide doorways, senior-safe bathrooms
Energy-efficient, low-maint |
Rustomjee Elements (Juhu) is a premium project with thoughtfully designed homes catering to comfort and ease |
Future-Proofing Your Second Home for Retirement Years
Here are some key factors to consider when selecting your second home:
- Accessibility Features and Aging-in-Place Design
As you approach retirement, ease of movement becomes crucial. Features like wide doorways, ramps, slip-resistant flooring, and handrails in key areas are essential. These elements can help you age in place without compromising on independence or comfort.
- Low-Maintenance Landscaping and Exteriors
Choose properties with low-maintenance landscaping. For example: drought-resistant plants or artificial grass to minimize upkeep. Homes with durable exteriors and minimal landscaping requirements can save you time and effort in your later years.
- Energy-Efficient Systems
Integrating energy-efficient systems (like solar panels, LED lighting, and high-efficiency HVAC systems) reduces long-term costs.
Properties with energy-efficient systems are seeing a 20% reduction in energy costs annually. These investments pay off over time, making them a smart choice for future retirees.
- Health and Wellness Considerations
Many second homes today include wellness amenities like gym facilities, walking trails, and access to nature, contributing to an active lifestyle. These features can enhance your physical and mental well-being as you enter your retirement years.
- Proximity to Essential Services
Retiring in a location with easy access to hospitals, pharmacies, and shopping centers is essential. This ensures that you are always within reach of medical and other essential services, providing peace of mind for you and your loved ones.
Real-Life Success Stories: Second Home Retirement Planning
Let’s look at some real-life examples of how Indian retirees are successfully planning their futures with second homes:
Case Study:
A couple in their early 40s purchased a second home in Kasara 15 years before their planned retirement. With a modest loan and careful financial planning, they secured a peaceful retreat by the time they retired in 2025. The property’s value has appreciated by over 8% to 15% in the last decade, proving that early investments in second home locations yield great returns.
A family in Pune bought a vacation home in Pali Hill with the goal of using it during retirement. They began renting it out for short stays, generating enough rental income to cover the property’s maintenance and mortgage costs. By the time they retire in 2025, their second home will be fully paid off, offering them a hassle-free living arrangement.
Balancing Present Needs with Future Retirement Goals
Weekend Retreat vs. Permanent Residence
- Short-Term Use: Use the second home as a weekend getaway or holiday retreat.
- Long-Term Plan: Gradually increase stays, eventually making it the primary residence.
Family Involvement
- Joint Decisions: Involve family in location and property selection to ensure alignment with future needs.
- Legacy Planning: Consider properties that can be passed on to children or used by extended family.
Timing the Purchase
- Market Trends: Buy during market dips or when infrastructure projects are announced in the area.
- Personal Readiness: Assess financial stability and long-term plans before committing.
Building Social Connections
- Community Events: Participate in local events and clubs to build a support network.
- Volunteer Opportunities: Engage in social work or hobby groups to stay active and connected.
Transition Strategies
- Rental to Residence: Use rental income to offset costs until ready to move in.
- Phased Relocation: Start with short stays, gradually increasing duration to ease the transition.
Conclusion
The retirement trend in India is unmistakably shifting towards second home investments. This offers a blend of financial security, lifestyle enhancement, and future readiness.
With the senior population expected to reach 173 million by 2025 and growing demand for retirement-friendly housing, now is the ideal time to research and invest in second home locations that align with your long-term goals.
Explore Rustomjee properties today and select the best home for your golden years.
FAQs
- When is the best time to purchase a second home for retirement?
The ideal time is between the ages of 45 and 55. This time allows for property appreciation, rental income, and customisation before retirement.
- How can I maximise rental income from my future retirement home?
Choose locations with high demand, furnish the property for short-term rentals, and leverage online platforms to attract tenants.
- What locations in India are becoming popular for retirement second homes?
Goa, Coorg, Alibaug, Coonoor, Rishikesh, Shimla, and integrated townships near major metros are among the most sought-after destinations.
- What amenities should I prioritize when selecting a retirement property?
Focus on security, healthcare access, wellness facilities, accessibility features, and community engagement opportunities.
- How can I balance current vacation needs with future retirement requirements?
Opt for properties that serve as both weekend retreats and future residences, ensuring flexibility in design and amenities.
- What financial considerations are most important when purchasing a retirement second home?
Plan for down payments, loan eligibility, rental income potential, tax benefits, and long-term maintenance costs.
