India`s serviced residence trend emerges beyond Tier-I cities to tourist destinations
India’s real estate sector is undergoing a paradigm shift as serviced residences evolve from a niche concept into a mainstream investment class, a report said on Wednesday.
"Beyond Tier-I cities, a new wave of serviced residence growth is taking shape in tourism-centric destinations. Locations such as Goa, Rishikesh, and Kasauli are witnessing heightened demand," Colliers stated in its report.
According to the report, this development is fuelled by various factors such as rising preference for long-stay and experiential stays, the growth of remote and flexible work culture, and shifting traveller mindset from regular hotels to branded, professionally managed residences.
Increasing appeal among second-home buyers seeking rental visibility and Return On Investment (ROI) alongside lifestyle benefits is also an emerging reason behind the shift.
In Tier-I cities, branded serviced residences associated with national or international hotel brands command an average sale price of around Rs 22,000 per square feet (sq. ft.)
In Delhi, the sale price is around Rs 22,00 per sq. ft., in Bengaluru it is Rs 19,500 per sq. ft, and in Mumbai it is Rs 25,000 per sq. ft.
"In comparison, tourist destinations offer more attractive 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 said.
Traditionally concentrated in Tier-I cities such as Mumbai, Delhi-NCR, Bengaluru, the segment has witnessed rising investor attention due to global demand for flexible living solutions.
These serviced residences have tie-ups with leading hotel brands, combine the familiarity of a home with the 4–5-star amenities of a hotel, making them attractive for both business and leisure travellers, the report stated.
Goa stands out as India’s premier leisure and lifestyle destination, with its unique blend of affordability, premium hospitality tie-ups, planned infrastructure projects and strong tourism-driven demand.
"Goa has gradually undergone a paradigm shift from villa to apartment typology with serviced residences emerging as one of the next major investment trends in India," the report highlighted.
