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Luxury villas in the region near Kasauli have an average daily rate (ADR) of Rs 8,500 per room, with occupancy rates peaking at 55 per cent during summer.
As per Sotheby’s 2024 survey, 35 per cent of holiday-home buyers now target Goa, blending lifestyle and ROI.
In the quiet hills of Kasauli, where pine forests meet panoramic vistas, luxury properties have been witnessing double-digit price growth over the last few years. Luxury villas in the region have an average daily rate (ADR) of Rs 8,500 per room, with occupancy rates peaking at 55 per cent during summer. Additionally, villa rentals in Himachal Pradesh grew 25 per cent YoY in the past 12 months, aligning with the 30 per cent YoY growth seen in the northern hill regions, according to a joint report titled ‘Second Home Quadrant Report February 2025’ by 360 Realtors and Axon Developers.
Down south, a beachfront villa in Goa’s Vagator now commands Rs 24,126 per square foot — a 16 per cent leap from last year. These factors point to a trend — India’s second-home market, once a holiday homes for the ultra-rich, is now a magnet for investors chasing returns.
The New Investment Playbook
“Gone are the days when holiday homes were mere vanity purchases. Today, they’re strategic assets in portfolios. Valued at $3.2 billion and growing at a blistering 23 per cent annually, India’s second-home market is thriving on the dual engines of wellness-driven demand and remote work flexibility. Over half of India’s high-net-worth individuals (HNIs) now eye properties in hills or beaches, with 55 per cent prioritising locations within a four-hour drive from cities, per a 2025 Luxury Residential Outlook report,” said Ankit Kansal, managing director of 360 Realtors.
Prateek Mittal, executive director of Sushma Group, said, “Owning a luxury vacation home started transforming from the beginning of 2021 when, according to a report, the sale of holiday homes almost doubled. It is expected to reach $4.021 billion by 2026. Today, discerning homebuyers don’t just realise the value of large houses and expansive surroundings but of the need to make time for recreation and holidays.”
Goa: Where Luxury Meets Liquidity
Goa reigns supreme, with premium property prices skyrocketing 35–40 per cent in 2023 alone. North Goa’s hotspots like Anjuna and Vagator report 16 per cent YoY appreciation, while Dona Paula’s prime plots fetch a staggering Rs 26,566 per sq. ft. Reason? Year-round appeal. Unlike hill stations that peak seasonally, Goa’s beaches draw global nomads, luxury travellers, and even expatriates year-round.
Ambika Saxena, director- corporate communications, Bayside Corporations (BCS), said, “As urban stress mounts and remote work reshapes lifestyles, luxury villas in Goa and tranquil retreats in Himachal are no longer just indulgences, they’re smart investments. The pandemic redefined what home means. It’s not just where you live; it’s where you recharge, reconnect, and even generate returns. Today’s buyers seek both financial appreciation and a sanctuary for well-being.”
South Goa’s Quiet Rise
While North Goa buzzes, South Goa lures privacy seekers. Ultra-luxury beachfront villas in Colva and Palolem offer serene retreats, contrasting with North Goa’s vibrant scene. Developers are capitalising on this trend with boutique luxury projects blending nature and sophistication.
“We are developing a gated villa complex at Majorda, a stunning piece of architecture designed to fulfill the aspirations of High-Net-Worth Individuals. The project is also high on sustainable features and exudes exclusivity and sophistication while blending seamlessly with Goa’s natural beauty. These aren’t just homes; they’re heirlooms,” Ravindra Gandhi, founder and managing director, Tirasya Estates.
The Homestay Gold Rush
Parallel to villa sales, India’s homestay sector is gaining traction. Nights booked surged 41 per cent in FY23, with revenue (GMV) up 74 per cent. By 2025, platforms like Airbnb expect 40 per cent annual growth, fuelled by travellers craving curated experiences—think pet-friendly cottages in Manali or heritage homes in Pondicherry.
As per Sotheby’s 2024 survey, 35 per cent of holiday-home buyers now target Goa, blending lifestyle and ROI.
