India's Real Estate Sector Witnesses Surge in Serviced Residences and New Investment Hotspots

New Delhi: India’s real estate sector is undergoing a significant transformation as serviced residences evolve from a niche concept into a mainstream investment class, according to a recent report by Colliers. This shift is not limited to Tier-I cities but is also gaining traction in tourism-centric destinations.

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, the report states. This development is fueled by various factors such as the rising preference for long-stay and experiential stays, the growth of remote and flexible work culture, and a 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. 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 highlights that this trend is expected to continue, driven by the increasing demand for flexible and experiential living options.