India's Real Estate Sector Witnesses Surge in Serviced Residences and New Investment Hotspots
India's real estate market is witnessing a significant shift towards serviced residences, driven by the growing preference for long-term and experiential stays, remote work culture, and attractive ROI in tourism-centric destinations like Goa, Rishikesh, and Kasauli.
Real EstateServiced ResidencesInvestment HotspotsTourism DestinationsRoiReal Estate MaharashtraSep 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, 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.
Frequently Asked Questions
What is driving the growth of serviced residences in India?
The growth of serviced residences in India is driven by 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.
What are the average sale prices of branded serviced residences in Tier-I cities?
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.
Which tourism-centric destinations are witnessing heightened demand for serviced residences?
Tourism-centric destinations such as Goa, Rishikesh, and Kasauli are witnessing heightened demand for serviced residences. These locations offer more attractive entry points compared to Tier-I cities.
What are the entry points for serviced residences in tourist destinations?
In tourist destinations, the entry points for serviced residences are more attractive. Goa starts at Rs 11,500 per sq. ft., followed by Kasauli and Rishikesh at Rs 9,500 and Rs 8,500 per sq. ft., respectively.
Why are serviced residences becoming popular among second-home buyers?
Serviced residences are becoming popular among second-home buyers due to the increasing appeal of rental visibility and Return On Investment (ROI) alongside lifestyle benefits. These residences offer a combination of home-like comfort and hotel amenities, making them an attractive investment option.
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