Serviced Residences Expand Beyond Tier-I Cities, Emerging Strong in Tourist Destinations

The burgeoning trend in India’s real estate is investment in serviced residences-these residences have been extended into markets beyond metros such as Mumbai, Delhi NCR, and Bengaluru into growing tourist destinations like Goa, Rishikesh, and Kasauli.

According to a report of Colliers titled Transforming Goa: Unlocking Investment Potential Beyond the Coast, these serviced residences evolved from a niche product to an emerging mainstream asset class offering lifestyle and financial advantages to investors. Usually operated under tie-ups with major hotel brands, these not only provide the comforts of home but also boast four- and five-star amenities, thereby attracting both business and leisure travelers.

Tourism Drives Change

Such changes emerge due to travel preferences and changing lifestyles; high demand for long stays and experiential travel, remote working use, and increased need among second-home buyers for rental income and capital appreciation.

Meanwhile, the price points in Tier-I cities hiked prices to about ₹ 25,000 per square foot in Mumbai and ₹ 22,000 in Delhi, while Bengaluru records the same at around ₹ 19,500 per square foot. Contrastingly, the approach to tourist destinations is made much easier; for instance, it begins from ₹11,500 per sq.ft for Goa, ₹9,500 for Kasauli, and ₹8,500 for Rishikesh.

Goa leads the way

Goa stands out as the frontrunner, having shifted from a villa-led market to apartment-style serviced residences. The state has already seen residential prices rise from ₹4,000 per sq ft in 2019 to ₹10,300 in 2025an appreciation of 2.6 times. With ongoing infrastructure projects like the Mopa International Airport, upcoming Aerocity, and the DMIC corridor, prices are projected to climb another 2.5–3 times by 2032, while rental yields could range between 8% and 12%.

“Serviced residences are transforming into a high-performing asset class, combining investment growth with lifestyle appeal,” said Swapnil Anil, Managing Director, Advisory Services, Colliers India. “For investors and homeowners, this is an opportunity to secure strong returns while benefiting from consistent rental yields.”

As global travellers and domestic buyers increasingly look for lifestyle-driven real estate, serviced residences in emerging destinations are set to become one of the most dynamic segments of India’s property market.