Traditionally concentrated in Tier I cities like Mumbai, Delhi NCR, and Bengaluru, serviced residences are now gaining traction in tourism-centric destinations such as Goa, Rishikesh, and Kasauli. These properties, typically branded and tied up with hotel operators, offer the combination of home-like living with four- and five-star hospitality services — catering to both leisure and business travellers.

Tourism-Driven Growth

The report highlights several factors fuelling demand in tourist hubs:

• Longer stay preferences and experiential travel.
• Rise of remote and flexible work.
• Growing shift from hotels to branded managed residences.
• Second-home buyers prioritising rental visibility and lifestyle ROI.

In Tier I cities, branded serviced residences currently command premium sale prices — around ₹22,000 per sq. ft. in Delhi NCR, ₹19,500 per sq. ft. in Bengaluru, and ₹25,000 per sq. ft. in Mumbai. By contrast, tourist destinations provide lower entry points: Goa at ~₹11,500 per sq. ft., Kasauli at ~₹9,500 per sq. ft., and Rishikesh at ~₹8,500 per sq. ft.

Goa as the Hotspot

Goa has emerged as the leading market, recording nearly 2.6X price appreciation between 2019 and 2025 — from ~₹4,000 to ~₹10,300 per sq. ft. Colliers projects further growth of 2.5–3X by 2032, supported by expected rental yields of 8–12%.

North Goa’s hinterland, aided by the operational Mopa International Airport, proposed Aerocity, and expansion under the DMIC corridor, is transforming into a strategic real estate corridor. The shift from standalone villas to apartment-style serviced residences is also gaining momentum, reflecting evolving buyer preferences.

Investment Outlook

“Serviced residences are transforming into a high-performing asset class, combining investment growth with lifestyle appeal. With rising demand across emerging micro-markets, investors and homeowners have a unique opportunity to unlock long-term returns, capital appreciation, and consistent rental yields,” said Swapnil Anil, Managing Director, Advisory Services, Colliers India.

Colliers expects the trend to deepen as both global travellers and domestic buyers increasingly seek flexible, lifestyle-driven housing solutions in India’s leisure destinations.

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