Serviced Residences: The New Frontier in Real Estate
Discover how serviced residences are transforming the real estate landscape, offering a unique blend of luxury, convenience, and investment potential.
Serviced ResidencesReal EstateLuxury LivingRental YieldsBranded ResidencesReal EstateSep 03, 2025
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.
Frequently Asked Questions
What are serviced residences?
Serviced residences are fully furnished, professionally managed homes that offer a blend of luxury amenities and hospitality services. They are ideal for both personal use and as investment properties.
Who are the key players in the serviced residences market?
Key players include TATA Housing, Godrej Properties, Elan, The House of Abhinandan Lodha (HoABL), Leela Residences, Prestige Group, and Sobha. These developers often partner with international hotel brands to enhance the value proposition.
What are the benefits of investing in a serviced residence?
Investors benefit from private ownership, professional management, luxury amenities, and the convenience of a lock-and-leave model. These properties can also generate attractive rental yields and offer capital appreciation.
How do rental yields compare between serviced residences and conventional residential assets?
Serviced residences typically offer higher rental yields, ranging from 8-15% annually, compared to conventional residential assets. This is due to the unique blend of luxury and convenience they provide.
What factors are driving the growth of serviced residences in India?
The growth is driven by rising demand for second and holiday homes, infrastructure upgrades, and the appeal of luxury living combined with professional management and hospitality services.
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