Serviced Residences Gain Traction as Second Home Investments in India
Serviced residences are becoming a sought-after real estate category in India, driven by the growing demand for second and holiday homes. Developers and global hospitality brands are capitalizing on this trend, offering luxury living with professional management and high rental yields.
Serviced ResidencesReal EstateHoliday HomesInvestmentRental YieldsReal Estate NewsSep 04, 2025
Many of these developers are partnering with international hotel operators like JW Marriott, Radisson, Leela Palaces Hotels & Resorts, Hilton, Hyatt, Four Seasons, The Ascott Ltd, Novotel, and Oakwood. These collaborations are creating a new category of branded residences that blend luxury living with hospitality-grade services.
“Serviced residences are transforming into a high-performing asset class, combining investment growth with lifestyle appeal,” said Swapnil Anil, managing director-advisory services at Colliers India. “With rising demand across emerging micro-markets, investors and homeowners have a unique opportunity to unlock long-term good return on investment and capital appreciation while also benefiting from attractive rental yields as second home or holiday home investment.”
A recent Colliers India report indicated that serviced apartments globally have been expanding at a CAGR of 12.7%, and India is now reflecting a similar trajectory. The segment is attracting a diverse set of buyers, including high net worth individuals (HNIs), non-resident Indians (NRIs), startup founders, and IT professionals from metros such as Delhi, Mumbai, Bengaluru, Pune, and Hyderabad.
Experts say these investors are drawn to serviced residences for their unique value proposition: private ownership with professional management, five-star amenities, and the convenience of a lock-and-leave model. For many, these properties double up as personal holiday homes and income-generating assets through rental programmes.
According to Colliers, serviced apartments in Goa deliver annual rental yields of 8-15%, significantly higher than conventional residential assets. The average price of serviced residences in the state has jumped from Rs 4,000 per sq ft in 2019 to Rs 10,300 per sq ft in 2025, marking a 2.6X growth. Projections suggest a further 2.5-3X appreciation by 2032, backed by infrastructure upgrades such as Mopa International Airport, new highways, and Aerocity development.
“The remote work revolution and the rise of the work-from-anywhere lifestyle have increased demand for extended stay, flexible living options. Holiday patterns are also changing, with travellers opting for longer vacations that combine leisure, wellness, and even business, rather than short breaks,” said Abhinandan Lodha, chairman, The House of Abhinandan Lodha.
Rising land scarcity and costs in popular destinations are also pushing developers towards vertical development, making managed apartments more viable compared to large villas or standalone homes. As a result, destinations like Alibaug, Rishikesh, Kasauli, Coorg, and Kerala are seeing heightened activity alongside tier-1 city launches.
“For HNIs and NRIs, they represent a hassle-free way of owning property in India with assured rental income. For developers, they open up new revenue streams through hospitality partnerships,” said Sanjay Dutt, MD and CEO at Tata Realty and Infrastructure.
Industry experts believe this momentum is only set to accelerate. Goa, which already accounts for 35% of India’s second-home buyers, is a case in point. The Colliers report projects that serviced residences here will continue to outpace traditional residential units in both rental yield and price appreciation.
Frequently Asked Questions
What are serviced residences?
Serviced residences are a type of real estate that combines the luxury and amenities of a hotel with the privacy and ownership of a personal residence. They are professionally managed and offer services such as housekeeping, concierge, and security.
Who is investing in serviced residences?
Serviced residences are attracting a diverse set of buyers, including high net worth individuals (HNIs), non-resident Indians (NRIs), startup founders, and IT professionals from major cities like Delhi, Mumbai, Bengaluru, Pune, and Hyderabad.
What are the benefits of investing in serviced residences?
Investors are drawn to serviced residences for their unique value proposition: private ownership with professional management, five-star amenities, and the convenience of a lock-and-leave model. They also offer attractive rental yields and potential for capital appreciation.
How do serviced residences perform in terms of rental yields?
Serviced apartments in popular destinations like Goa deliver annual rental yields of 8-15%, which is significantly higher than conventional residential assets. This makes them an attractive investment option for both short-term and long-term investors.
What is driving the growth of serviced residences in India?
The growth of serviced residences in India is driven by the remote work revolution, the rise of the work-from-anywhere lifestyle, and changing holiday patterns. Additionally, infrastructure upgrades and rising land costs in popular destinations are pushing developers towards vertical development, making managed apartments more viable.
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