India's Real Estate Sector Thrives: Serviced Residences Gain Traction in New Hotspots
India’s real estate sector is witnessing a significant transformation as serviced residences emerge as a mainstream investment option. This trend is particularly notable in tourism-centric destinations like Goa, Rishikesh, and Kasauli.
Real EstateServiced ResidencesInvestment TrendsTourism DestinationsRoiReal EstateSep 03, 2025
Beyond Tier-I cities, a new wave of serviced residence growth is taking shape in tourism-centric destinations. Locations such as Goa, Rishikesh, and Kasauli are witnessing heightened demand, according to Colliers in its report.
This development is fuelled by various factors such as rising preference for long-stay and experiential stays, the growth of remote and flexible work culture, and shifting traveller mindset from regular hotels to branded, professionally managed residences. Increasing appeal among second-home buyers seeking rental visibility and Return On Investment (ROI) alongside lifestyle benefits is also an emerging reason behind the shift.
In Tier-I cities, branded serviced residences associated with national or international hotel brands command an average sale price of around Rs 22,000 per square foot (sq. ft.). In Delhi, the sale price is around Rs 22,000 per sq. ft., in Bengaluru it is Rs 19,500 per sq. ft, and in Mumbai it is Rs 25,000 per sq. ft. In comparison, tourist destinations offer more attractive entry points, with Goa starting at Rs 11,500 per sq. ft., followed by Kasauli and Rishikesh at Rs 9,500 and Rs 8,500 per sq. ft., respectively.
Traditionally concentrated in Tier-I cities such as Mumbai, Delhi-NCR, and Bengaluru, the segment has witnessed rising investor attention due to global demand for flexible living solutions. These serviced residences have tie-ups with leading hotel brands, combining the familiarity of a home with the 4–5-star amenities of a hotel, making them attractive for both business and leisure travellers, the report stated.
Goa stands out as India’s premier leisure and lifestyle destination, with its unique blend of affordability, premium hospitality tie-ups, planned infrastructure projects, and strong tourism-driven demand. Goa has gradually undergone a paradigm shift from villa to apartment typology, with serviced residences emerging as one of the next major investment trends in India, the report highlighted.
The rise of serviced residences in these new hotspots is a testament to the evolving real estate landscape in India. As more investors recognize the potential for high ROI and lifestyle benefits, this trend is expected to continue, reshaping the way people choose to live and travel.
Frequently Asked Questions
What are serviced residences?
Serviced residences are professionally managed homes that offer a combination of hotel-like amenities and the comfort of a private residence. They are designed for both business and leisure travellers, providing a flexible and high-quality living experience.
Which cities are seeing the most growth in serviced residences?
Tier-I cities such as Mumbai, Delhi-NCR, and Bengaluru are seeing significant growth in serviced residences. Additionally, tourism-centric destinations like Goa, Rishikesh, and Kasauli are emerging as new hotspots.
What factors are driving the growth of serviced residences?
The growth is driven by factors such as rising preference for long-stay and experiential stays, the growth of remote and flexible work culture, and shifting traveller mindset from regular hotels to branded, professionally managed residences.
What is the average sale price of serviced residences in Tier-I cities?
In Tier-I cities, branded serviced residences command an average sale price of around Rs 22,000 per square foot. Prices vary by city, with Delhi at Rs 22,000 per sq. ft., Bengaluru at Rs 19,500 per sq. ft., and Mumbai at Rs 25,000 per sq. ft.
Why are tourist destinations like Goa attractive for serviced residences?
Tourist destinations like Goa are attractive for serviced residences due to their unique blend of affordability, premium hospitality tie-ups, planned infrastructure projects, and strong tourism-driven demand. These factors make them appealing to both investors and travellers.
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