India's Real Estate Sector Witnesses Surge in Serviced Residences: New Investment Opportunities Emerge
India's real estate market is witnessing a significant shift with the rise of serviced residences, particularly in tourism-centric destinations. Discover the new investment hotspots and the factors driving this trend.
Real EstateServiced ResidencesInvestmentTourismRoiReal Estate NewsSep 03, 2025
Locations such as Goa, Rishikesh, and Kasauli are experiencing heightened demand for serviced residences. This development is fueled by several factors, including the rising preference for long-stay and experiential stays, the growth of remote and flexible work culture, and a shift in traveler mindset from traditional hotels to branded, professionally managed residences.
The increasing appeal among second-home buyers seeking rental visibility and Return On Investment (ROI) alongside lifestyle benefits is another key driver behind this trend. 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 serviced residence segment has gained increasing investor attention due to global demand for flexible living solutions. These residences often 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 travelers.
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. The state has gradually shifted from villa to apartment typology, with serviced residences emerging as one of the next major investment trends in India.
This trend is not only beneficial for investors but also for the local economy, as it attracts more tourists and long-term residents, contributing to the overall development of these regions. As the real estate sector continues to evolve, serviced residences are likely to play a pivotal role in shaping the future of housing and hospitality in India.
Frequently Asked Questions
What are the key factors 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 shift in traveler mindset from traditional hotels to branded, professionally managed residences.
Which cities and destinations are seeing the most demand for serviced residences?
Tier-I cities like Mumbai, Delhi-NCR, and Bengaluru, as well as tourism-centric destinations such as Goa, Rishikesh, and Kasauli, are seeing the most demand for serviced residences.
What are the average sale prices for serviced residences in major cities and tourist destinations?
In Tier-I cities, the average sale price for serviced residences is around Rs 22,000 per sq. ft. in Delhi, Rs 19,500 per sq. ft. in Bengaluru, and Rs 25,000 per sq. ft. in Mumbai. In tourist destinations, the prices range from Rs 11,500 per sq. ft. in Goa to Rs 8,500 per sq. ft. in Rishikesh.
How do serviced residences benefit both investors and travelers?
Serviced residences benefit investors by offering rental visibility and ROI alongside lifestyle benefits. For travelers, they provide a combination of the familiarity of a home with the 4–5-star amenities of a hotel, making them attractive for both business and leisure stays.
What is the future outlook for the serviced residence market in India?
The future outlook for the serviced residence market in India is positive, with increasing demand for flexible living solutions and the continued growth of remote work culture. These residences are expected to play a significant role in shaping the future of housing and hospitality in India.
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