Alibag: The New Second Home Destination for South Mumbai's Elite
Real estate experts say that affluent South Mumbai buyers can now access sprawling villas and land parcels at nearly 20% of Mumbai's prices, just 45 minutes away in Alibag.
AlibagReal EstateSouth MumbaiSecond HomeLuxury VillasReal Estate NewsAug 30, 2025
While Alibag isn’t officially part of South Mumbai, developers and consultants agree that it's rapidly evolving in that direction, thanks to improving connectivity and rising interest from homebuyers. According to real estate consultants, Alibag's appeal has increased due to improved connectivity through the Mumbai–Goa highway, the Ro-Ro ferry service from Gateway of India to Mandwa, and upcoming infrastructure upgrades, which are making Alibag more accessible than ever.
For affluent buyers in South Mumbai, a short RoRo ride across the harbour with their four-wheelers has given them access to sprawling villas and land parcels at, say, 20% of Mumbai’s prices, along with the luxury of open spaces and sea views, real estate consultants HT.com spoke with said.
In 2024, Emaar India announced that it plans to foray into Alibag. The company plans to build 84 villas spread across a 25-acre parcel, each priced at ₹9 crore to ₹15 crore. Oberoi Realty has acquired 81 acres of land in Alibag with plans to develop a luxury hotel and branded residence villas as part of the project. Among others, Lodha Developers, led by Abhishek Lodha, and House of Abhinandan Lodha, led by Abhinandan Lodha, have projects in Alibag. Hirandandani Developers also plans to launch an over 200-acre project in Alibag, followed by Mahindra Lifespaces, which also has a villa project there.
While developers and real estate consultants say Alibag isn’t officially an extension of South Mumbai, they agree it is rapidly emerging as one. "Alibag is emerging as an extension of South Mumbai with enhanced connectivity. Once a weekend retreat is now evolving into a vibrant first-home destination, driven by conducive weather, wellness and hospitality-led lifestyles, and seamless coastal access," said Niranjan Hiranandani, CMD, Hiranandani Communities.
"I am confident that Alibag will transform into a first-home destination in the coming years. The region is no longer just a weekend retreat; it is rapidly evolving into a thriving residential hub and today offers discerning homebuyers not just a lifestyle upgrade but also promising investment value through better returns and capital appreciation. We have an upcoming 225-acre mixed-use township, Hiranandani Sands at Nagaon (Alibag), with direct beach access," Hiranandani said.
"There is no economic push or pull yet in Alibag or a central business district, considering it is maturing from a holiday home destination to a destination of the masses. However, we can say up to a certain level, it is a kind of extension of South Mumbai. In 45 minutes from South Mumbai, one can go away from the hustle and bustle of Mumbai with no drastic changes in weather, but definitely quiet and green," Ritesh Mehta, senior director and head (North and West), Residential Services and Developer Initiatives at JLL India.
"Today, there are at least half a dozen branded developers having their projects in Alibag. The major boost to Alibag has been due to improved connectivity, and with the help of water transport in the form of RoRo services. With tier-1 developers moving into Alibag, the local brands are active and doing launches. The end result of this is that Alibag is becoming massy now, which means there is a home for every price point. Earlier, people went there for privacy, but now Alibag has something for even the masses," Mehta said.
According to Mehta, the capital value in Alibag for apartments is in the range of ₹15,000 per sq ft to ₹17,000 per sq ft. In terms of land prices, it stands at ₹3–5 crore per acre for agricultural plots, and ₹8–10 crore per acre for non-agricultural land. "Villas range from ₹7–8 crore to ₹15 crore earlier, while apartments are in the ₹1.5–5 crore range. Rentals fetch about 3–4% for villas and 1–1.5% for apartments, and the Airbnb model is more rampant there. Compared to Lonavala, prices are similar, though Lonavala still scores on air quality and weather," Mehta said.
According to Maharashtra IGR data, around 12,000 to 13,000 property transactions of apartments and villas are reported in Alibag on a yearly basis. However, the number has almost doubled in the last four years after COVID-19. Post-COVID-19, several real estate developers in Mumbai and Pune have launched plotted and villa development projects across Maharashtra, catering to the growing demand for second homes. Popular locations for these plotted villa projects include Lonavala and Khandala near Pune, Dapoli in the Konkan region, Alibaug in Raigad district, Manor in Palghar, Igatpuri, Kasara Ghat near Nashik, and the Karjat-Neral belt near Mumbai.
Alibag is also known as a haven for second homeowners from the Bollywood fraternity. In April 2024, Amitabh Bachchan purchased a 10,000 sq ft land parcel in Alibag for ₹10 crore from The House of Abhinandan Lodha. In July 2024, HoABL announced that Bollywood actor Kriti Sanon had purchased a 2,000 sq ft plot in Alibag. Sanon purchased the land parcel in the Sol de Alibaug project by HoABL around three months after Amitabh Bachchan purchased it in the same project. In February 2024, actor Shah Rukh Khan’s daughter Suhana Khan, who made her film debut with The Archies, was in the news for purchasing farmland in Thal village in picturesque Alibaug, near Mumbai, in Maharashtra, for ₹9.5 crore, documents accessed by IndexTap.com showed.
Frequently Asked Questions
What is Alibag known for in the real estate market?
Alibag is known for its emerging real estate market, with several prominent developers launching villa and plotted development projects. It is increasingly becoming an extension of South Mumbai due to improved connectivity and attractive property prices.
How has connectivity to Alibag improved?
Connectivity to Alibag has improved through the Mumbai–Goa highway, the Ro-Ro ferry service from Gateway of India to Mandwa, and upcoming infrastructure upgrades, making it more accessible to South Mumbai residents.
What are the capital values for properties in Alibag?
The capital value for apartments in Alibag is in the range of ₹15,000 to ₹17,000 per sq ft. Land prices range from ₹3–5 crore per acre for agricultural plots to ₹8–10 crore per acre for non-agricultural land.
Which developers are active in Alibag?
Prominent developers active in Alibag include Emaar India, Oberoi Realty, Lodha Developers, Hirandandani Developers, and Mahindra Lifespaces. They are developing a mix of villa projects, luxury hotels, and mixed-use townships.
Who are some of the Bollywood stars investing in Alibag?
Bollywood stars like Amitabh Bachchan, Kriti Sanon, and Suhana Khan have purchased land and properties in Alibag, making it a popular second home destination for the film fraternity.
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