Summary of this article
More Indians are buying luxury second hand homes, sector growth at 20 per cent annually
Ultra HNIs drive demand, three out of four ultra HNIs opt for luxury second homes
More and more Indians are opting for luxury second homes to serve as an investment asset. Locations such as Goa, Kasauli, Alibaug are some preferred areas where people are opting for residential properties. Factors, such as good connectivity, rising disposable incomes and increased focus on wellness and work-life balance are fuelling the growth in demand for second homes.
According to the Kotak Private Luxury index in December, luxury second homes are increasingly becoming popular among ultra-high net worth individuals (HNIs) in vacation friendly locations.
Three out of four ultra-HNIs now own a secondary vacation home. These houses serve as both lifestyle retreats and as premium short-stay period rental assets.
Data by ANAROCK Group, a real estate consulting firm shows that the luxury second-home markets sector is valued at over $3 billion, with a growth rate of 20 per cent annually.
Prices of luxury homes in the top seven cities in India were around Rs. 20,300 per square feet as of 2025 on average.
Delhi-National Capital Region (Delhi-NCR) saw the highest demand, with a 72 per cent surge, to Rs. 23,100 per square feet compared to 2022. This was followed by the Mumbai Metropolitan Region (MMR) showing a 43 per cent jump, and Bengaluru with 42 per cent growth.
“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,” Anuj Puri, Anarock Group, told the Financial Express.
He said lifestyle shifts post pandemic is driving the boom in second luxury homes. “Investors are drawn by rental yields as high as 5-8 per cent, compared to the usual 3–3.5 per cent,” he added.
For example, DLF Home Developers are building a project in Goa with 62 luxury villas which are priced around Rs 45 crore.
Aakash Ohri, joint MD and chief business officer, DLF Home Developers, 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.”
Revolution in remote work and improvement in connectivity in locations like Goa and Alibaug are also reasons for the boom, said Shah, executive director & co-CEO of non-urban, luxury home developer Isprava Group.
“Luxury homes are now regarded both as lifestyle assets and sound investments. There are strong rental yields and consistent value appreciation,” Shah said.
Infrastructure Development Acts As A Catalyst
Infrastructure development has been a leading catalyst for companies like Vianaar and ALYF. This has transformed leisure destinations and previously untapped destinations into long-term investment hubs.
Vianaar has over 300 homes which are currently under construction, with over 1,000 homes already sold in Goa. The company is expanding to new regions, and Sri Lanka and Kasauli are getting two- and three-bedroom villas priced around Rs. 3.30- 5.50 crore. The company has homes costing between Rs 2 crore and Rs. 25 crore.
“With infrastructure development, new airports and increasing disposable incomes, investing in luxury second homes gives owners great rental returns,” said Varun Nagpal, founder of Vianaar.
