Whether for private use or investment, luxury villas have become a symbol of status, relaxation, and long-term financial returns.
This trend has particularly gained traction in Goa, where independent villas are highly sought after, starting at Rs 6 crore, according to Sotheby’s International Realty. The combination of Goa’s serene beaches, thriving tourism, and growing infrastructure makes it a premier destination for villa investments.
In addition to Goa, cities like Bengaluru, Delhi, and Mumbai have also seen increased demand for villas. In Bengaluru, luxury villas range from Rs 5 crore to Rs 50 crore, while in Mumbai, the starting price is Rs 75 crore, reflecting the city’s high-end real estate market.
“This growing interest is not just about owning larger homes but is also driven by long-term investment potential, with future appreciation adding to the appeal. Villas offer the rare opportunity to own land in urban environments, a highly attractive option for investors looking for capital appreciation and rental income,” says Ravindra Gandhi, Managing Director of Tirasya Estates.
The rental villa market in India is also growing at a staggering pace. In 2023, this market was valued at USD 329.6 million and is projected to reach USD 1377 million by 2028, growing at a compound annual growth rate (CAGR) of 33.2%. As India’s hospitality landscape diversifies, branded villas for rent are emerging as a popular alternative to traditional hotels. The increasing trend of renting villas for holidays or using them as second holiday homes have also led to their growing popularity.
While metro cities dominate the market, villas have also become increasingly popular in Tier 2 and 3 cities.
Developers in these cities benefit from lower land costs, allowing them to offer premium properties at competitive prices while enjoying higher profit margins. The availability of land in well-connected areas has further bolstered villa development in Tier II cities, where both personal use and rental opportunities present promising returns on investment.
Neeraj Sharma, MD, Escon Infra Realtors, says, “Luxury villas are no longer just a symbol of status, but a sound long-term investment with high returns. In Greater Noida, the demand for such villas is growing due to its strategic location, rapidly developing infrastructure, and proximity to major urban centers like Delhi and Noida. What sets Greater Noida apart is the availability of premium land at competitive prices, which allows us to offer spacious, exclusive properties while ensuring significant capital appreciation. The area’s seamless connectivity, upcoming metro extensions, and burgeoning commercial hubs make it a prime destination for buyers and investors alike. Whether for personal use or rental income, investing in luxury villas here offers unparalleled potential for growth,”
In metros like Mumbai and Delhi, villas are finite assets with significant growth potential, often yielding higher rental returns and resale values. Furthermore, the exclusivity and prestige associated with owning a villa contribute to its allure among affluent buyers. This is especially true as investors focus on premium properties in prime locations, ensuring both capital appreciation and a steady stream of income through rentals.
Looking ahead, the future of villas in India, both for end use and investment purposes, is bright. As the desire for expansive, private living spaces continues to grow, the Indian villa market is poised for significant growth, driven by both lifestyle preferences and sound investment prospects.