Source: Realty+ ( https://bit.ly/4alokal )

In 2025, a marked shift in home-buying patterns is evident: second homes — once considered a luxury for the ultra-wealthy — are now emerging as smart investments blending lifestyle, flexibility, and yield. Three Indian destinations leading this wave are Goa, Lonavala and the Nilgiris.

Buyers increasingly see “second homes” as dual-purpose assets: retreats from urban stress AND sources of rental income. Lifestyle considerations — remote work flexibility, wellness, escape from city life — combined with rising disposable incomes and improved connectivity, are fueling the demand.

In Goa, luxury villas and high-end apartments are seeing strong demand, especially from NRIs and urban buyers seeking weekend homes or holiday residences. Improved infrastructure, including better airport connectivity and road upgrades, has made Goa more accessible, increasing its appeal beyond seasonal tourism. As a result, villa prices in many prime areas have risen 25–35% this year alone, and rental yields (especially short-term rentals) are reportedly competitive compared to fixed-income alternatives.

Lonavala, just a couple of hours from Mumbai, is another hotspot. Its hills, greenery and pleasant climate make it ideal for weekend escapes. Developers are launching villa and farmhouse projects, often with amenity-rich layouts — such as gated communities, wellness-oriented designs, and nature-integrated living — resonating with commuters and city professionals looking for work-life balance away from congested metros. The appreciation in Lonavala real estate is substantial, with many properties yielding strong returns.

Then there’s the Nilgiris — the hill-station charm of places like Ooty and Coonoor, remoteness combined with scenic beauty and tranquil living. Tea-estate bungalows and colonial-era cottages, once largely unused, are being revived as boutique stays or second homes, particularly appealing to buyers from southern metros seeking cooler climes and quiet living. Appreciation here is more modest but steady, and options such as co-ownership or fractional ownership are making entry more affordable.

Key to this trend is not just property itself but associated lifestyle. Modern buyers want homes ready for immediate use — with amenities, property management, rental services, and hospitality-style maintenance. Developers are responding with villa complexes, managed residences, and branded homes to cater to this twin demand for comfort and yield.

However, risks remain. Overbuilding could dilute exclusivity; seasonal demand could lead to unpredictable rental yields; remote areas may suffer from infrastructure and maintenance challenges; and regulatory issues — especially around fractional or co-owned properties — can complicate long-term returns.

Still, for many buyers today, second homes in Goa, Lonavala or the Nilgiris are no longer a vanity buy — they’re a pragmatic portfolio decision that blends lifestyle benefits with investment value.