While traditional properties continue to attract attention, heritage properties have lately emerged as a compelling choice due to their potential for higher revenue and exclusivity. According to Ramit Sethi, Founder of Seclude Hotels Home Style, heritage properties provide unique financial opportunities alongside challenges that investors should consider.
“Restoring a heritage property is an intricate process,” says Sethi. “The initial investment is not just about property purchase but about reviving its historical grandeur, preserving cultural elements, and incorporating modern amenities for today’s guests.”
For investors eyeing unique returns, the festive season is a timely moment to consider these properties, as they cater to a niche market willing to pay a premium.
Sethi explains that heritage properties can command a 25-50% higher rate than modern resorts, largely due to their unique appeal and cultural significance.
“These aren’t typical investments; they offer an experiential quality that regular properties cannot,” he adds.
With seasonal events like Diwali and Navratri, heritage properties can attract a steady influx of travellers interested in immersive cultural experiences.
Financial management challenges
While being a promising investment, heritage properties come with distinct financial challenges. Maintenance costs are typically higher due to the age and architectural demands of these properties.
“A proactive maintenance approach is essential to preserve the property’s charm without affecting experience,” notes Sethi.
Long-term investment for value and experience
Integrating essential modern systems like plumbing, electrical, and climate control can be complex and costly.
“Blending modern conveniences with historical architecture requires specialised craftsmanship,” Sethi explains, stressing that thoughtful investment in heritage property infrastructure ensures that it appeals to people.
Factors to consider before investing
If you’re considering investing in heritage properties this festive season, here are some key financial aspects to evaluate:
- Budget for initial restoration as well as ongoing preservation, which often requires specialised materials and techniques to maintain architectural integrity.
- With increased interest in unique and experiential stays, heritage properties are expected to see a demand spike, particularly around high-travel seasons.
- Some state governments in India offer incentives or subsidies for restoring heritage properties, which can offset the initial restoration costs and improve long-term profitability.
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(Edited by : Shoma Bhattacharjee)