Goa has emerged as India’s leading destination for serviced residences, fuelled by rising demand for second homes and its consistently high tourist influx.In H1 2025, Goa attracted 57 lakh tourists and in H1 2025, there was 10.5 percent surge in tourist arrivals.

In Goa, the demand is steadily shifting from short 2-3 days stays to longer durations, driven by trends in remote work, wellness retreats and extended vacation. This, according to a recent Colliers report, is creating strong potential for investors to invest in the emerging real estate segment of Serviced residences with higher ROI and rental yields. 

Tourism boom is shaping the rental market of Goa which emerged as the most booked destination in India by overseas tourists in 2024 on Airbnb. The Airbnb bookings increased 20% in 2024, compared to 2023.Airbnb occupancy rate in Goa is 47% with an average daily rate of INR 4089.

Boom in Second Homes Boosting Serviced Residences

The boom in second homes is a major driving factor for serviced apartments in Goa. In fact Goa is a top choice for second homes, with 35% of total second home buyers favouring it. What makes Goa an ideal choice for second homes, is reasonable residential prices compared to Tier 1 cities. The average residential price in Goa is INR 10300 per sq ft, compared to INR 18000 per sq ft in Delhi and INR 25000 per sq ft in Mumbai. This makes Goa, the preferred destination for home buyers and investors.

Today, Goa is the most preferred state for second home investments in India as those living abroad prefer hassle-free apartments or homes that can generate steady rental income and also serve as comfortable places to stay when they return. This is fuelling demand for serviced apartments which are popular for investment. Branded operators are offering rentals and management of serviced apartments. 

Shift From Plotted Developments to Apartments

The rising trend of shift from plotted developments to apartments, is boosting the serviced apartment market in Goa. Rising land costs have made plotted options (villas, row houses) expensive. Moreover, Goa’s developable land is scarce. This scarcity is pushing housing demand vertically into more compact apartments as opposed to large land-intensive villas. Investors and end-users now prefer secure, managed apartments over standalone villas, driven by Airbnb style models.

Price Growth & Rental Yield

The growing popularity of serviced apartments in Goa can be judged from the price growth of apartments and rising rental yield. Serviced apartment prices rose from INR 4000 per sq ft in 2019 to INR 10300 per sq ft in 2025 with 2.6X growth driven by major infrastructure developments like the MOPA airport, proposed bypass and highways. Following other planned physical infrastructure and real estate development and expansion of phase 3 of MOPA International Airport, residential serviced apartment prices are expected to grow 2.5-3.0 X by 2032. Rental yield in Goa’s micro markets like Bicholim, has reached 8-15%, indicating high income potential for second home investors and buyers amidst growing popularity of serviced living.