Is India's serviced residence trend expanding beyond Tier-I cities to tourist hotspots?
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Synopsis
As India's real estate landscape transforms, serviced residences are becoming the new mainstream investment in tourist hotspots like Goa and Rishikesh. This shift indicates changing traveler preferences and increasing demand for long-term stays, making it a compelling opportunity for investors.
Key Takeaways
- Serviced residences are gaining traction as mainstream investments.
- Demand is rising in tourism-centric locations.
- Long-term stays are becoming increasingly popular.
- Entry prices in tourist areas are more attractive compared to Tier-I cities.
- Investors are drawn by the potential for Return On Investment (ROI).
New Delhi, Sep 3 (NationPress) The landscape of India’s real estate market is witnessing a significant transformation as serviced residences shift from a specialized concept to a widely recognized investment class, according to a report released on Wednesday.
According to Colliers, "Beyond Tier-I cities, a fresh surge of serviced residence development is emerging in tourism-focused locations. Areas like Goa, Rishikesh, and Kasauli are seeing increased demand."
The report indicates that this growth is driven by various elements, including the growing desire for long-term and immersive stays, the rise of remote and flexible working arrangements, and a changing traveler perspective from conventional hotels to branded, professionally managed residences.
Another factor contributing to this shift is the increasing interest from second-home buyers who are looking for visibility in rentals and a favorable Return On Investment (ROI) alongside lifestyle advantages.
In Tier-I cities, branded serviced residences linked with national or international hotel brands average a sale price of approximately Rs 22,000 per square foot (sq. ft.).
In Delhi, the average sale price is about Rs 22,000 per sq. ft.; in Bengaluru, it is Rs 19,500 per sq. ft., and in Mumbai, it reaches Rs 25,000 per sq. ft.
In contrast, tourist destinations present more appealing 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," the report noted.
Historically focused in Tier-I cities such as Mumbai, Delhi-NCR, and Bengaluru, the segment is now attracting increasing investor interest due to global demand for flexible living solutions.
These serviced residences collaborate with leading hotel brands, merging the comfort of home with the 4–5-star amenities of a hotel, making them appealing for both business and leisure travelers, the report added.
Goa stands out as India’s top leisure and lifestyle destination, characterized by its unique combination of affordability, premium hospitality partnerships, planned infrastructure projects, and robust tourism-driven demand.
"Goa has gradually shifted from villa to apartment typology, with serviced residences emerging as one of the next significant investment trends in India," the report further emphasized.
Point of View
The shift towards serviced residences in both Tier-I cities and emerging tourist destinations reflects a broader change in lifestyle preferences. As consumer demands evolve, it becomes essential for investors to stay informed on trends that prioritize flexibility and experience over traditional offerings.
NationPress
03/09/2025
Frequently Asked Questions
What are serviced residences?
Serviced residences are fully furnished apartments with hotel-like amenities, providing both the comfort of home and the services of a hotel for short or long-term stays.
Why are serviced residences becoming popular?
They offer flexibility, modern amenities, and cater to the growing demand for long-term and experiential stays, making them attractive to both travelers and investors.
Which locations are experiencing growth in serviced residences?
Tourist-centric destinations like Goa, Rishikesh, and Kasauli are witnessing significant growth in serviced residences beyond traditional Tier-I cities.
What is the average price of serviced residences in Tier-I cities?
In Tier-I cities, the average sale price for branded serviced residences is around Rs 22,000 per sq. ft. with variations in different cities.
How does Goa compare to Tier-I cities for investment in serviced residences?
Goa offers more attractive entry prices for serviced residences, starting at Rs 11,500 per sq. ft., making it a preferred choice for investors.
