Serviced Residences: The New Frontier in Real Estate

Bengaluru: Serviced residences are rapidly emerging as a mainstream real estate category, driven by rising demand for second and holiday homes, and attracting strong interest from developers, investors, and global hospitality brands, according to industry experts.

Leading players such as TATA Housing, Godrej Properties, Elan, The House of Abhinandan Lodha (HoABL), Leela Residences, Prestige Group, and Sobha are actively developing projects in this space. Many of these developers are partnering with international hotel operators like JW Marriott, Radisson, Leela Palaces Hotels & Resorts, Hilton, Hyatt, Four Seasons, The Ascott, Novotel, and Oakwood, 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 said 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 said 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 ₹4,000 per sq ft in 2019 to ₹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.