India's Second Home Boom: Goa, Lonavala & Nilgiris Surge

India’s second home market is witnessing a sharp surge in 2025, transforming weekend retreats into strategic investments.

High-net-worth individuals (HNIs) are increasingly purchasing second homes within a four-hour drive of their primary residences, balancing lifestyle aspirations with strong returns.

Goa leads the charge, driven by NRIs and urban professionals, where improved infrastructure like Mopa airport and NH-66 expansion has boosted villa prices by 25–35 percent. A beachfront villa priced at Rs. 1–3 crore now yields 8–12 percent annually via Airbnb rentals.

Key Highlights

• Goa, Lonavala, and Nilgiris lead India’s booming second home market in 2025
• Rental yields in hotspots outpace fixed deposits, touching 8–12 percent annually
• Hybrid work, tax perks, and lifestyle shifts fuel 40 percent rise in second-home sales

Lonavala remains Mumbai’s favourite getaway, with demand rising among young tech professionals and entrepreneurs. Developers like Della Group are launching large-scale villa projects worth Rs. 3,000 crore, while Kalpataru blends luxury with wellness-focused living. Prices here are appreciating at 20–30 percent annually.

In the Nilgiris, heritage tea estate bungalows and colonial cottages are being revived into boutique homestays, drawing Chennai and Kerala buyers. Property values in Coonoor and Lovedale have risen 15–25 percent, with entry-level homes priced from Rs. 80 lakh upwards, offering 7–10 percent yields. Fractional ownership models are also expanding accessibility.

Also Read: Second Homes with Returns: Making Smart Investment Choices in Scenic India

The boom is powered by hybrid work, mental wellness priorities, and Union Budget tax breaks allowing deductions on two self-occupied homes. Despite challenges like overbuilding, regulatory clarity, and environmental concerns, the sector thrives on its dual value—personal wellness and financial appreciation. For HNIs, second homes are evolving from indulgences into “first choices for balance” and wealth creation.