More Indians are now opting for residential properties that serve as second homes and become lifestyle and investment assets. Destinations such as Goa, Alibaug, Kasauli are some preferred spots, as factors like improved connectivity, rising disposable incomes and growing focus on wellness and work-life balance collectively fuel this growth.
As per Kotak Private Luxury Index released in December, luxury second homes in vacation-friendly destinations are becoming increasingly popular among ultra-HNIs, with three out of four now owning secondary or vacation homes. These homes serve a dual purpose as lifestyle retreats and premium short-stay rental assets.
Market data by real estate consulting firm ANAROCK Group states the luxury second-home market segment is valued at over $3 billion, growing at more than 20% annually. Prices of luxury homes in the top 7 cities averaged around Rs 20,300 per sq ft as of 2025. Delhi-NCR led this surge with a remarkable 72% jump, moving from nearly Rs 13,450 per sq ft in 2022 to Rs 23,100 per sq ft today. Mumbai Metropolitan Region followed with 43% growth, closely trailed by Bengaluru at 42%.
Anuj Puri, chairman, ANAROCK Group, said post-pandemic lifestyle shifts are driving the boom. “The luxury second-home market is thriving because the wealthy want retreats from urban chaos, homes that focus on health and wellbeing and allow them to work seamlessly from home,” he said.
New Investment Frontier
“Investors are drawn by rental yields as high as 5-8%, compared to the usual 3–3.5%,” he added.
Aakash Ohri, joint MD and chief business officer, DLF Home Developers, who are building a project of 62 luxury villas priced around Rs 45 crore in Goa, said: “Over the past two years, there is a clear shift in investment preference towards high-value holiday homes set amidst natural surroundings away from metropolitan areas. This trend, led by ultra/high net-worth individuals, non-resident Indians, and corporate professionals, has fuelled growing demand for luxury properties that offer a global standard of living with amenities such as clubhouses, swimming pools, and business centres.”
For Dhimaan Shah, executive director & co-CEO of non-urban, luxury home developer Isprava Group, the remote work revolution and improvement in connectivity to destinations like Goa and Alibaug have accelerated this trend. “Luxury homes are now regarded both as lifestyle assets and sound investments. There are strong rental yields and consistent value appreciation,” added Shah.
Infrastructure Catalysts
For companies like Vianaar and ALYF, infrastructure development has been the biggest catalyst, transforming leisure destinations and previously untapped locations into viable long-term investment hubs.
Vianaar has sold over 1,000 homes in Goa, and has over 300 homes currently under construction. It is expanding into new regions, including Sri Lanka and Kasauli with two- and three-bedroom villas priced between Rs 3.3 crore and Rs 5.5 crore. The holiday homes, rental apartments and villas company has homes costing between Rs 2 crore and Rs 15 crore, with a few villas that cost up to Rs 25 crore. Varun Nagpal, founder of Vianaar, said, “With infrastructure development, new airports and increasing disposable incomes, investing in luxury second homes gives owners great rental returns.” Vianaar has grown almost 50% in 2025.
Goa is a prime example, where interest extends beyond the coastline to green, residential pockets such as Socorro, Moira, and Bastora in the north, while Colva, Benaulim, and Varca in South Goa are gaining traction. ALYF works across four verticals: villas, estates, landmarks (curated parcels of land for development into personal holiday homes) and condos, creating a complete ecosystem for second-home ownership, besides focus on health and fitness.
“Places like Alibaug and Karjat are seeing rapid growth, essentially powered by the Navi Mumbai International Airport and the Atal Setu bridge that have cut travel times and elevated capital growth potential,” said Saurabh Vohara, founder & CEO of holiday home company ALYF, whose company is set to achieve a projected sales of Rs 200 crore this year, doubling from Rs 100 crore last year, targeting a gross development value of around Rs 1,000 crore in the next three years.
Realty developer Conscient Infrastructure will invest Rs 1,200 crore in its new luxury residential project, Elaira Residences in Gurugram. The company’s focus in Goa continues with projects like Vista Arrozal in Candolim and Asaya in Assagao. “The highest demand comes from ultra HNIs and an aspiring middle class with higher disposable incomes who focus on wellness and environmental consciousness. Places like Kasauli and Rishikesh are popular for NCR buyers, Lonavala and Alibaug for Maharashtra, and Coorg for Karnataka, with Goa remaining the top choice nationwide,” said Rishi Raj, CEO of Conscient Infrastructure.
Realty company Central Park has villas in Sohna that attract interest from buyers who aspire for hybrid work in non-urban destinations. “Second homes offer compelling rental yields while long-term capital appreciation is also high. For many, this dual advantage makes luxury villas an astute choice,” said Ankush Kaul, president, sales, marketing & CRM, Central Park.