India’s luxury real estate market is transforming rapidly, especially in vacation and second homes. Once seasonal indulgences for a privileged few, these residences have become essential lifestyle investments for a growing number of affluent buyers. No longer just weekend escapes, they are now seen as curated sanctuaries blending privacy, wellness, and long-term wealth creation.
According to the India Sotheby’s 2025 Luxury Residential Sentiment Survey, 55% of high-net-worth individuals (HNIs) prefer second homes within four hours of their main residence, highlighting the appeal of accessible retreats as strategic investments.
“Since the pandemic spotlighted wellness, demand for vacation homes has surged, evolving from cautious interest to a strong trend driven by buyers seeking nature-focused retreats with investment value.”Shalin Raina, MD – Residential Services, Cushman & Wakefield
Shalin Raina, MD – residential services at Cushman & Wakefield, links this shift to the pandemic, “Since the pandemic brought wellness and lifestyle to the forefront, demand for vacation homes has steadily increased. What began cautiously has become a strong trend among buyers seeking nature-led retreats with investment potential.”
Anshuman Magazine, chairman & CEO – India, South-East Asia, Middle East & Africa at CBRE, emphasises the trend’s longevity, “Vacation homes are no longer seasonal indulgences but integral parts of affluent portfolios. Developers aligned with this demand can unlock significant value.”
As global wealth grows, buyers are diversifying beyond traditional assets. Santhosh Kumar, vice chairman at Anarock Group, notes, “Second homes were once just vacation retreats but are now seen as lucrative invesments offering rental income and capital appreciation.”
Hybrid work and better infrastructure are further fuelling this boom. Prasun Kumar, CMO of Magicbricks, says, “India’s luxury holiday home market is booming, driven by rising incomes and improved access to scenic spots. Buyers favour ‘practical luxury’ that balances aspiration with rental yield. Goa alone saw a 49% rise in supply.”
Connectivity has become a key driver. Dr. Niranjan Hiranandani, chairman of NAREDCO, explains, “Second homes are doubling up as income-generating assets through rentals and hospitality tie-ups. Destinations like Goa, Kasauli, Alibaug, Lonavala, and the Nilgiris are thriving. Developers are offering projects blending nature, privacy, and premium amenities.”
This trend also reflects a broader cultural shift. Karishmah Siingh, president – sales, marketing & CRM at Sattva Group, calls it ‘lifestyle investing’, “HNIs are redefining luxury by choosing vacation homes that serve as wellness retreats, family sanctuaries, and wealth builders, reshaping development into holistic living ecosystems.”
Developers are responding with branded, experience-led communities. Nibhrant Shah, MD & co-CEO of Isprava Group, sums up, “It’s no longer just about owning property; it’s about creating a lifestyle that prioritizes well-being, privacy, and meaningful downtime.”
Amar Kapoor, founder of Terra Grande by Eldeco Group, illustrates this with their flagship project in Himachal Pradesh, “In destinations like Himachal Pradesh, buyers are prioritizing branded residences and eco-conscious design. Nestled in the serene landscapes of Sirmaur near Kasauli, our project Terra Grande is a 30-acre luxury estate offering an exclusive lifestyle experience like no other. Designed for those who seek peace without compromising on luxury, the development features limited edition villas with a low density of just three villas per acre.”
“Nestled in Sirmaur near Kasauli, Terra Grande is a 30-acre luxury estate offering an unmatched lifestyle. It features limited-edition villas, ensuring peace and exclusivity with only three per acre.”Amar Kapoor, Founder, Terra Grande by Eldeco Group
Goa has become a top destination for this trend, with Assagao quietly emerging as one of its most desirable locales. “With its old-world charm and relaxed lifestyle, Assagao offers a rare blend of calm and comfort. It’s no surprise it’s now among India’s top spots for luxury villas,” says Rajesh Jain, director, Conscient Infrastructure Pvt. Ltd.
Around Mumbai, the trend is equally pronounced. Dr Rakesh Setia, president – sales & marketing at Rustomjee Group, shares, “Vacation homes are no longer just indulgent escapes; they’re becoming thoughtful investments. Places like Kasara, Karjat, and Alibaug are gaining popularity for their proximity to Mumbai, natural surroundings, and evolving infrastructure.”
“Vacation homes have become strategic investments. Kasara, Karjat and Alibaug are increasingly popular for their Mumbai proximity, scenic settings, and rapidly improving infrastructure.”Dr. Rakesh Setia, President – Sales & Marketing, Rustomjee Group
Planned communities have emerged as the preferred choice for many buyers. Kamal Singal, MD & CEO of Arvind SmartSpaces Ltd., highlights, “We see strong demand for our projects like Arvind The Park in Devanahalli near Bengaluru and Arvind Aquacity at Kalyangarh in Ahmedabad district. People want well-planned communities close to nature yet connected to the city. As design-focused developers, our aim is to create safe communities where families can unwind and invest confidently.”
“There’s strong demand for our projects like Arvind The Park and Arvind Aquacity, as buyers seek nature-close, city-connected, well-planned communities offering safety, comfort, and long-term investment confidence.”Kamal Singal, MD & CEO, Arvind SmartSpaces Ltd.
The desire for curated experiences is evident across the country. Payas Agarwal, director of Great Value Realty, points out, “The vacation rental market in India is projected to reach $2.39 billion this year and grow steadily. We’re seeing a shift away from merely owning a city address to curating meaningful getaways that offer space and a sense of belonging.”
In NCR, Ankush Kaul, president – sales, marketing & CRM at Central Park, shares, “Our launch Selene at Central Park Flower Valley in Gurgaon offers serviced residences blending resort-style living with the comfort of home, appealing to both lifestyle buyers and investors.”
From coastal getaways to mountain retreats, developers are reimagining what second homes can be. Mahesh Agarwal, MD of Purti Realty, says, “Meraki Samsara in West Bengal is more than a villa project, it’s a thoughtfully crafted 62-villa retreat spread over 45 acres. Designed for those who value privacy and wellness, it attracts families, artists, and business owners seeking a lavish yet meaningful escape.”
Spiritual destinations are also gaining traction. Sakshee Katiyal, chairperson of Home and Soul, observes, “Rishikesh resonates with buyers as a soul-nourishing escape that combines natural beauty with strong rental potential.”
Manit Sethi, director of Excentia Infra, notes the rise of Dehradun, “Cities like Dehradun offer clean air, serenity, and premium living. A 25.5% surge in customer searches this year shows buyers’ growing preference for wellness-centric spaces.”
Srinivasan Gopalan, CEO, ArisInfra Solutions Ltd., says that second homes are rising not just via luxury villas, but also through plotted and farm developments offering personalized living.
Developers across the country recognize the importance of crafting holistic lifestyles. Sandeep Aggarwal, CMD of AIL Developer, sums up, “Our role is not just to deliver spaces but to craft lifestyles that resonate with this new-age luxury consumer.”
And as Aakash Agarwal, MD of Krisala Developers, concludes, “Larger layouts, modern amenities, and personalized experiences are no longer add-ons — they are expectations. We are evolving to meet that shift with thoughtful, future-ready solutions.”
Hence, from Goa’s golden beaches to the tranquil hills of Himachal, India’s luxury vacation homes have evolved into vibrant symbols of aspiration, wellness, and long-term value.
