Serviced Residences Surge as Second Home Investments Gain Momentum in India

Serviced residences in India are gaining momentum as a mainstream real estate category, driven by demand for second and holiday homes. Developers and investors are partnering with international hospitality brands to create branded residences with luxury living and hospitality-grade services. Serviced apartments globally have been expanding at a 12.7% CAGR, and India is reflecting a similar trajectory. The segment is attracting HNIs, NRIs, startup founders, and IT professionals with unique value propositions and high rental yields.

Serviced residences in India are rapidly gaining traction as a mainstream real estate category, driven by increasing demand for second and holiday homes. This trend is attracting developers, investors, and global hospitality brands, who are collaborating to create branded residences that blend luxury living with hospitality-grade services.

The segment is experiencing significant growth and appreciation, with a recent report from Colliers India indicating that serviced apartments globally have been expanding at a Compound Annual Growth Rate (CAGR) of 12.7%, and India is reflecting a similar trajectory [1]. The average price of serviced residences in Goa, for instance, has jumped from ₹4,000 per sq ft in 2019 to ₹10,300 per sq ft in 2025, marking a 2.6X growth [1].

Leading players in the Indian real estate market, 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 offer private ownership with professional management and five-star amenities [1].

The diverse set of buyers includes high net worth individuals (HNIs), non-resident Indians (NRIs), startup founders, and IT professionals from metros such as Delhi, Mumbai, Bengaluru, Pune, and Hyderabad. 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 [1].

The segment is also attracting international luxury home fittings makers like Hansgrohe, which is planning a rapid expansion in India. The company aims to increase its retail presence to 500 stores in 3-4 years, targeting 200 cities and moving India into its top five markets globally [2]. Hansgrohe's India business contributes over 10% to its global revenue, competing with players like Roca, Jaquar, Grohe, and Kohler [2].

Serviced residences in India are not just a real estate investment but also a lifestyle choice. They offer attractive rental yields, particularly in locations like Goa, where annual rental yields can range from 8-15% [1]. This makes them an attractive proposition for investors looking for long-term returns and capital appreciation.

In conclusion, the serviced residence market in India is poised for significant growth, driven by rising demand, strategic partnerships, and attractive investment opportunities. As infrastructure developments and disposable incomes continue to grow, this segment is likely to see further appreciation and expansion.

References:
[1] https://economictimes.indiatimes.com/industry/services/property-/-cstruction/serviced-home-is-where-the-heart-is-now-how-serviced-residences-are-rapidly-emerging-as-a-mainstream-real-estate-category/articleshow/123684801.cms
[2] https://www.financialexpress.com/business/industry-hansgrohe-steps-up-retail-push-in-india-3966062/