Serviced Residences Emerging as Mainstream Investment in Indian Real Estate Colliers Breakthrough

India’s real estate sector is undergoing a significant transformation as serviced residences become a mainstream investment class. Traditionally concentrated in Tier I cities like Mumbai, Delhi NCR, and Bengaluru, these residences are now attracting increased investor interest due to global demand for flexible living solutions. These residences, often in partnership with leading hotel brands, offer the comfort of a home combined with 4-5-7-star hotel amenities, making them highly attractive to both business and leisure travellers. A new wave of serviced residence growth is taking shape in tourism-centric destinations like Goa, Rishikesh, and Kassala. These locations are driven by rising preference for long-stay and experiential stays.

Remote work culture, shifting traveller mindset, and increasing appeal among second-home buyers seeking rental visibility and ROI. The Indian real estate industry has always been dynamic, shaped by economic shifts, consumer lifestyles, and global investment patterns. Over the past decade, the market has witnessed significant transformations ranging from the rise of affordable housing to the growing dominance of commercial office spaces. However, one segment that is increasingly moving from niche to mainstream is serviced residences, which according to Colliers, are emerging as a strong investment class that bridges the gap between traditional residential housing and the hospitality sector.

The Concept of Serviced Residences in Indian Real Estate

These properties are fully furnished apartments designed to provide hotel-like services such as housekeeping, concierge support, fitness amenities, and business centers, while at the same time offering the privacy, flexibility, and comfort of a home. The growing popularity of serviced residences marks a pivotal moment in India’s real estate journey, particularly in urban hubs where demand for flexible living is rising rapidly. Serviced residences are not new to global markets, especially in regions like Southeast Asia, Europe, and the Middle East, where they have long been considered a preferred housing solution for expatriates and business professionals.

In India, however, the concept started gaining traction only in the last decade, primarily through luxury brands and select developers experimenting with this hybrid model. Unlike traditional rental apartments, which often lack standardized amenities and management, serviced residences are managed by professional operators, sometimes in collaboration with international hospitality chains. This ensures consistent quality, seamless maintenance, and value-added services that make them particularly attractive for long-stay corporate employees, international consultants, and even millennials who prioritize experiences over ownership. For more on evolving consumer lifestyles influencing real estate, you can explore our detailed guide.

Demand Drivers and Changing Lifestyles

The increasing demand for serviced residences in India can be attributed to multiple socio-economic factors. Rising urbanization, coupled with the influx of multinational corporations into cities such as Bengaluru, Gurugram, Mumbai, and Hyderabad, has created a strong need for flexible, high-quality accommodation options. Corporate professionals who travel frequently for projects often prefer serviced residences over luxury hotels because they offer the comfort of a home at a lower cost without compromising on essential services. Additionally, the growth of start-ups and hybrid work cultures has given rise to a new generation of professionals who value mobility and flexibility. Millennials, who are less inclined towards property ownership compared to previous generations.

Find serviced residences appealing since they provide independence without the burden of long-term commitments. Similarly, digital nomads and freelancers, whose numbers have surged post-pandemic, see these properties as ideal spaces for work-life integration. If you are interested in learning how work culture impacts real estate choices, see our analysis. From an investor’s perspective, serviced residences have started to emerge as a lucrative alternative to traditional real estate investments. Conventional residential rentals in India often yield modest returns, whereas serviced residences, due to their premium positioning and flexible rental models, provide significantly higher yields. Colliers highlights that these properties are resilient to market fluctuations since.

They cater to a wide spectrum of tenants ranging from short-term travellers to long-stay professionals. Moreover, professional management ensures lower vacancy rates, better property upkeep, and steady rental income. Institutional investors are also showing interest in this (Real Estate) segment, partnering with global operators to establish large-scale projects in urban markets. For developers, this model offers a steady revenue stream beyond traditional apartment sales, helping diversify their portfolio. To explore more about profitability in real estate segments, you can read our feature.

Role of Developers and Global Operators

One of the biggest catalysts for the mainstreaming of serviced residences is the growing collaboration between Indian developers and international hospitality operators. Leading hotel brands and specialized serviced apartment operators are entering partnerships to bring global standards of service, design, and customer experience to Indian markets. This not only enhances the appeal of the properties but also builds investor confidence. Developers who traditionally relied on outright sales are now viewing serviced residences as a sustainable business model where recurring income adds long-term value. These partnerships also ensure that properties are marketed and operated under established global names.

Which adds to their credibility among both local and international tenants. For more details on partnerships shaping the sector, visit our section on Looking ahead, the serviced residence sector in India is expected to see exponential growth. Colliers projects that the demand will expand significantly over the next five years as more professionals embrace hybrid work models and urban mobility continues to rise. Cities with strong IT hubs, financial centers, and corporate clusters will lead this expansion, with Bengaluru and Gurugram already seeing substantial interest. The sector is also likely to benefit from government initiatives promoting tourism and business travel.

As well as infrastructure development across urban corridors. Beyond just accommodation, serviced residences are becoming lifestyle destinations that integrate leisure, wellness, and business facilities under one roof. This evolution aligns with India’s transition towards modern urban living, where convenience, connectivity, and community experiences are prioritized. Investors and developers who align with this trend early are likely to gain a competitive advantage. For further reading on how infrastructure drives real estate growth, you can check our insights on (Smart Cities)

Conclusion

The journey of serviced residences from being a niche product to becoming a mainstream investment opportunity highlights the maturity and diversification of India’s real estate sector. They combine the strengths of hospitality and residential living, offering tenants a balance of flexibility, comfort, and affordability, while simultaneously ensuring investors higher yields and lower risks compared to traditional residential rentals. With Colliers and other industry leaders signaling strong growth, it is evident that serviced residences are no longer a passing trend but a permanent fixture in India’s property landscape.