Alibag: Transforming from a Weekend Retreat to a Mass-Market Real Estate Destination
Once a quiet weekend escape, Alibag is rapidly transforming into a significant real estate market, thanks to improved connectivity and the entry of prominent developers. Real estate experts now see it as a potential extension of South Mumbai.
AlibagReal EstateSouth MumbaiProperty InvestmentLuxury HomesReal EstateAug 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.
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, commented.
“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 driving the transformation of Alibag into a real estate market?
The transformation of Alibag is driven by improved connectivity, including the Mumbai–Goa highway and the Ro-Ro ferry service, as well as the entry of prominent developers and rising interest from homebuyers.
What are the current capital values for apartments in Alibag?
The capital value for apartments in Alibag ranges from ₹15,000 to ₹17,000 per sq ft.
Which developers are active in Alibag?
Emaar India, Oberoi Realty, Lodha Developers, Hirandandani Developers, and Mahindra Lifespaces are among the prominent developers active in Alibag.
How has the number of property transactions in Alibag changed post-COVID-19?
The number of property transactions in Alibag has almost doubled in the last four years after COVID-19, with around 12,000 to 13,000 transactions reported annually.
Which Bollywood stars have invested in Alibag real estate?
Amitabh Bachchan, Kriti Sanon, and Suhana Khan are among the Bollywood stars who have invested in Alibag real estate.
Related News Articles
Boosting India's Housing Market: Developers Seek Tax Incentives and Industry Status in Budget 2024
The Indian housing sector is looking forward to the Union Budget 2024, expecting tax reliefs and other sentiment boosters to stimulate growth in the market.
Kalpataru Ltd Set to Enter Nagpur Real Estate Market with Plotted Development Project
Mumbai-based Kalpataru Ltd plans to launch a plotted development project in Nagpur, marking its entry into the city's real estate market. The project will be spread across 37 acres and will have 400 plots of sizes 1,200 to 4,000 sq ft range.
Hong Kong Halts Commercial Land Sales for Seventh Consecutive Quarter
Hong Kong's government has announced that it will not sell any commercial land in the quarter from October to December, citing low demand and high office vacancy rates.
Homebuyers Forum Claims RERA Act Falls Short of Objectives, Urges Consumer Affairs Ministry for Action
A forum representing homebuyers in Maharashtra claims that the Real Estate (Regulation and Development) Act, 2016, has failed to meet its objectives. The forum is now urging the Union Consumer Affairs Ministry to issue specific guidelines to protect consu
Ahmedabad Shines with Top Rental Yields in India
Ahmedabad leads the pack with the highest rental yields in India, clocking in at 3.9%, according to a recent report by Magicbricks. Other cities like Hyderabad, Kolkata, and Pune are also seeing significant increases in rental returns.
Incuspaze Expands with Major Leasing Deal in Gurugram's Thriving Real Estate Market
Incuspaze, a prominent player in the commercial real estate sector, has announced a significant leasing deal in Gurugram, marking a major expansion in one of India’s most booming real estate markets. This move underscores the growing demand for quality of