Outlook of Branded

RENTAL VILLA
M A R K E T I N I N D I A

A Research Report by Axon Developers

The Indian branded rental villa market is

growing at a CAGR of 33%
Executive Summary
Ankit Kansal
Founder & MD, AXON Developers

The Indian branded rental villa market is growing portion of the year, the property is available to
at a staggering pace. In 2023, the overall market lease out, which means a constant source of
is sized at USD 329.6 million and is expected to recurrent income.
grow at a CAGR of 33.2% in years to come. The
segment is slated to reach USD 1377 million by It is noteworthy that the popularity of rental villas
2028. is rising fast in India. The boundaries between
traditional hospitality and serviced living are
The concept of rental villas, which includes diminishing. Many of us now do not want to stay in
holiday homes, long-lease villas, motels, a packed 250 sq ft room in a 5-star hotel. Rather
plantation bungalows, beach homes, vintage we might prefer a rental villa with personalized
havelis, etc. is thriving in India. The country’s space and a range of serviced amenities, that can
diverse landscape which includes scenic sea be tailored to our taste. A villa generally has 3- 8
beaches, picturesque valleys, verdant hills, nature bedrooms, which means a high degree of
reserves, tranquil desserts, etc. makes it a perfect exclusivity and security.
place for branded rental home communities to
proliferate. Though not a novel idea, it is important to
highlight the role of the pandemic that also led to
However, the recent spurt in demand for serviced the jump in the digital economy, gig economy,
villas is not just limited to India’s landscapes and remote working, workcations, etc. which has also
its tranquil environs. There is solid financial fueled the demand for serviced living. These days
mathematics that is accelerating growth in the tech companies are comfortable with the idea of
segment. their employees operating remotely. A sizable
number of such professionals either own second
India’s growing volume of HNIs, corporate homes or rent out such properties to work in
honchos, technopreneurs, and affluent idyllic environments.
solopreneurs now invest heavily in second-home
properties, as they give them a chance not just to Recent years have seen the emergence of start-
shun hectic schedules and live in nature but also ups specializing in managing rental properties.
to continue with their usual working schedule. Start-ups such as Safron Stay, Lohono Stay, and
Meanwhile apart from personal use, for a large Stay Vista, etc. bring on board individual

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 1

properties from homeowners and manage them not the sunrise segment in the Indian real estate
professionally, thereby bringing increased and hospitality industry. The fact that it is closely
organization. In 2023 around 1150 properties are linked to other segments such as wellness, retail,
registered and are poised to grow at a CAGR of F&B, etc. further increases the significance.
28%.
To further learn more about the segment, we
There are developers such as Axon that also have compiled the given report that will refurbish
specialize in developing second homes in plenty of valuable data, insights, and actionable
picturesque locations in India, thereby boosting information. It will be helpful for developers,
the supply lines. More mainstream developers are investors, hospitality & wellness ventures,
now expected to give closer attention to the property management advisories, etc. Likewise, it
burgeoning segment, lured by its growth can also be insightful for academics, consultants,
potential. media, etc.

The rental villa segment will continue to grow Hope you like the report. Feel free to share your
multifold in India, driven by a host of socio- valuable feedback.
economic, macroeconomic, and market factors. It
would be an understatement to believe that it is

Table of Content
1. India’s Growing Tourism Industry
2. Insights into the Hospitality Sector in India
3. Emergence of Branded Rental Villas in India
4. Growth Driver of Branded Rental Villas in India
5. Market Trends in Branded Rental Villas in India
6. Emergent Technology Trends in Branded Rental Villas in India
7. The Branded Rental Villa Ecosystem in India
8. Evolution of Services
9. Wellness-themed Branded Rental Villa in India
10. Conclusion: A Positive Disruptor of Mainstay Hospitality

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 2

India’s Growing 1.0
Tourism Industry
After the whiplash of the pandemic, the global In India as well, the travel & tourism sector has
tourism industry is staging a strong comeback. In recovered fast after the pandemic and plays a
2022, the total contribution of tourism towards pivotal role in the service industry. The
GDP has been to the tune of USD 6.14 billion, contribution of travel & tourism is close to 9.2% of
generating employment of ~ 299 million, as per the Indian GDP, significantly higher than 2019
the research by WTTC (World Travel and Tourism when it was pegged at 7%. The employment
Council). generated by travel and tourism is around 44.5
million in 2022, an incremental growth from 2020
(~ 40 million).

Toursim as a percentage of Indian GDP

10% 9.20%

8% 7.00%

5.80%
6%
4.30%
4%

2%

0%
CY 19 CY 20 CY 21 CY 22
Source: WTTC

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 3

The Indian government is taking strong initiatives tourism hub. In addition, India’s growing economy
to boost tourism in India through concentrated together with its rich heritage and traditions,
efforts. As a part of Tourism Vision 2047, India further brings the spotlight to the South Asian
aims to create a USD 1 trillion tourism economy. economy.
As per WTTC as well, India will be the 3rd largest
tourism economy in the world, after the USA and GOI is also taking strong initiatives in the form of
China. capacity building, aggressive destination
marketing, improved accessibility, infrastructure
India’s vast terrain which includes innumerable development, policy simplification, etc. to help
hilly peaks, spellbinding valleys, secluded India emerge as a tourism powerhouse.
beaches, forests, bird sanctuaries, tranquil
desserts, and much more, makes it a lucrative

Foreign Tourist Arrival (FTA) in India (Millions)

12 10.6 10.9
10

8
6.2
6

4 2.7
1.5
2

0
CY 18 CY 19 CY 20 CY 21 CY 22
Source: WTTC

In the year 2022, India received a total of 6.2 million foreign tourists, growing 313% compared to 2021. In
2023, as of September, India welcomed 6.43 million tourists. Mentioned below are the 5 major reasons
for tourists' arrival.

Reasons to visit India

Indian diaspora 39.40%

Medical 21.20%

Business purpose 12.10%

Leisure 5.80%

Others 11.40%
0% 10% 20% 30% 40%
Source: WTTC, Anderson Nangia report, GOI

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 4

Meanwhile, domestic tourism in India is also participation of millennials is also believed to
looking upbeat, marked by a steady growth in bring change. For Indian millennials, making
volume. The growth in domestic tourism is rooted memories and creating valuable experiences are
in revival of sentiments, a jump in business very essential. Consequently, they are spending
tourism and meeting activities, the trend of readily on travel and tourism. In CY 22, as per the
weekend travel, etc. Likewise, there is also a government data, the domestic tourist volume
notable shift in Indian consumer behavior, and amounted to 1731 million, jumping ahead by 156%.
tourism is now a high-priority agenda. Increased

Volume of domestic tourists in India (Millions)

2,500 2321

2,000 1854
1731
1615
1,500

1,000
610 677
500

0
CY 17 CY 18 CY 19 CY 20 CY 21 CY 22
Source: WTTC

Insights into the

Hospitality 2.0
Sector in India
As the tourist volume is growing in India, the
hospitality sector is expanding rapidly. Average
occupancy has reached 70% in FY 24, moving up
from 66.1% in FY 23. In FY 23, the total number of
hotel rooms in India is pegged at 165,000. Over
the next 5 years, India is expected to add new
35,000 rooms.

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 5

 Average Hotel Occupancy in India

70%

60%

50%

40%

30%

20%

10%

0%
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24
Source: Statista

Numerous factors are driving the growth of the hospitality

industry in India.

There is a visible upsurge in domestic travel, post-pandemic. People now frequently go out and
spend. Tourism is no longer a luxury but an indispensable part of lifestyle. This is resulting in
increased demand for hotels, resorts, serviced living, rental villas, etc.

Hotel room supply lines in India (000)

200
200 181
165
153
144
150

100

50

0
FY 21 FY 22 FY 23 FY 26 (est.) FY 28 (est.)
Source: Statista

On the back of healthy economic growth, business activities, travels, conventions, and meetings, are
recovering in India.

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 6

 Bleisure activities are picking up alongside regular business travels. It is both preplanned as well as
ad-hoc. Once the business meetings are conducted, many travelers now wish to indulge in leisure
and rejuvenation activities, making proper use of their time.

Big mega events such as the G-20 presidency and ICC World Cup have helped the hospitality sector
in India. Not only did it help in higher hotel occupancy, but also resulted in a stronger brand image for
India and rise in awareness.

As the economy is flourishing, the trends of destination weddings have revived. India’s overall
marriage market is sized at USD 50 billion, making it the second-largest market in the world, after the
USA. Out of this, the size of the destination wedding is close to USD 4 billion.

India’s rich and diverse landscape with heritage cities to exotic beachside locations are also
intriguing the interest of foreign nationals to plan & conduct weddings in the country. India offers
cheaper tariffs compared to other popular international destinations, which will further help the
niche segment to grow fast.

Break-up of Hotels rooms in India

Luxury
Budget/ Midscale 16.30%
25.60%

Higher upscale
19.40%

Upper Midscale
18.10%

Upscale
20.60%

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 7

 Digital nomadism was a relatively foreign idea in India. Nevertheless, the pandemic has popularized
remote working and work-from-home in India as well. This has resulted in a surge in workcation,
staycation, long leases, etc.

Not just freelancers, many tech-based companies are still comfortable with the WFH model. This
also means the demand for working in idyllic & tranquil locations with increased privacy, exclusivity,
and security is rising sharply.

Emergence of
Branded Rental 3.0
Villas in India
Recent years have also seen a rise in alternative Out of this, the rental villa is the new favorite of
hospitality in India. Though still a small segment urban Indians, both across millennials as well as
compared to the mainstay hospitality, alternative mature crowds. As of 2023, India has around 1150
serviced living such as vacation rentals, service branded villas. The concept of villas includes
apartments, private guesthouses, and adventure traditional villas, vintage bungalows, farm stays,
camps are growing in India. plantation bungalows, traditional havelis, etc.

Growth of Branded Rental Villa Market in India

1150
1,200

1,000 935
720
800

600

400

200

0
CY 21 CY 22 CY 23
Source: Axon Market Analysis

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 8

India has close to ~ 10,000 premium homes, which can be used as alternative accommodation options.
In this regard, the current penetration of around 11.5%, is a modest value. Nevertheless, the segment will
continue to grow at a staggering pace in the coming years. In the next 5 years, close to ~ 4000 branded
villas will be operational in India, growing at a CAGR of 28%.

Projected growth of branded rental villas in India (2023- 28)

3955
4,000
3087
2411
3,000
1885
1472
2,000
1150
1,000

0
CY 23 CY 24 CY 25 CY 26 CY 27 CY 28
Source: Axon Market Analysis

While, rental villas give curated, exclusive experiences to travelers, it is also very fruitful for homeowners.
By enlisting with a branded operator homeowners can greatly multiply their revenue. The operator will
invest in design enhancement, dedicated sales & marketing support, celebrity/ influencer
endorsements, and on-ground operational support. This will greatly improve the marketability of the
project and hence boost the revenue.

Gross rental villa projected revenue in India (USD million, 2023-28)

1377.4
1,400
1034.1
1,200 776.3
1,000
582.8
800
437.6
600
329.6
400
200
0
CY 23 CY 24 CY 25 CY 26 CY 27 CY 28
Source: Axon Market Analysis

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 9

 Break-up of rental villas as per location (CY 23)

Metro
10.9%

Tier 2
19.8%

Remote
57.2%

Short Travel
12.1%

Source: Axon Market Analysis

Break-up of rental villa revenue in India (CY 23)

Metro
11%

Tier 2
15%

Remote Short Travel

64% 10%

Source: Axon Market Analysis

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 10

 Category wise revenue in USD Million (CY 23)

Metro 36.3

Tier 2 49.4

Short Travel 32.9

Remote 210.9
0 50 100 150 200 250
Source: Axon Market Analysis

Growth Drivers of
Branded Rental 4.0
Villas in India
Multiple factors are driving the serviced branded rental villa
industry in India, as mentioned below

The Indian economy is growing fast, which also means an increased volume of corporate honchos,
business owners, professional solopreneurs, and start-up investors with a high disposable income.
Today the market base that can readily invest in a 2-5 crore second home property is significantly
high in India.

For most of the average Indians staying in a hotel or a resort comes top on the mind. Yet a sizable
portion now prefers more personalized & comfortable spaces with tailor-made services. Many find
staying in premium homestays more fulfilling and enriching without compromising on privacy. As per
a study by MakeMyTrip, one in two Indians (mostly millennials) now want to stay in alternative
accommodation.

From a group of millennials to multi-generation family members, rental villas are becoming a popular
option across genres, genders, and generations. As 95% of such properties are pet-friendly, it is an
added advantage.

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 11

 Though serviced living has been growing steadily in India, the pandemic has played an instrumental
role. The growing trend of the digital economy, remote working, and workcations now give enough
space to stay at tranquil locations and continue working without the hustle & bustle of cities.

The pandemic has reinforced the need for personal safety and hygiene. Many affluent households
now prefer exclusivity during travel. Even in a seven-bedroom property, if 4 will be in use, some
might prefer to lease out the entire space. This kind of exclusivity is possible only in rental properties,
not in the traditional hospitality segment.

NRIs also steer the newfound interest in serviced living in a positive direction. Readily the Indian
diasporas are investing in villas, holiday homes, serviced apartments, etc. This gives them a
permanent place to stay during the visit to the country and also strengthens the bond with the
motherland. While away, the property can be used for leasing and renting, rendering income
streams.

The traditional boundary between wellness, tourism, and vacation is blurring. Indian urban dwellers
now take holistic wellbeing, stress-free mindset, and inner peace much more seriously. This also
means a growing demand for holiday homes amid tranquil environments with curated services such
as spas, wellness centers, fitness studios, infinity pools, organic restaurants, etc.

These days many business owners prefer to host a corporate retreat in a villa amidst serene settings
rather than a convention in a city center. Villas with breathtaking natural views and tranquil environs
can offer a much better atmosphere for team bonding, problem-solving, and strategic planning.

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 12

Market Trends in
Branded Rental 5.0
Villas in India
The concept of rental villas is thriving all over India. From traditional tourist hotspots, where it is
growing at bustling speed, the concept is also picking up in offbeat locales. The market is growing
fast amid secluded beaches, Konkan trails, foothills of the Himalayas, and escapes in Sahyadri.

Urban peripheries, which are blessed with tranquil environs and are within an approachable/ short
distance travel from the urban centers are also becoming new hubs of rental villas & vacation homes.

The presence of homestays near the city is also a convenient option for lodging guests during social
gatherings & family functions. Similarly, homestays are also convenient options in remote and
offbeat areas, where it is not feasible to set up conventional hotels.

Traditional hotel companies are venturing into the space, lured by its long-term potential. IHCL, the
parent company of Taj Hotels has launched Ama Trails & Stays, a new brand specializing in
homestays & plantation trails.

The Premium homestays are emerging as a niche segment with high yield potential. Though the
investment in the segment is high, it is still lower than a full-fledged hotel or a resort.

The segment has existed for some time, yet was mostly unorganized. Nevertheless, the trend is now
reversing with the entry of new developers, mainstay hospitality brands, operators, online
aggregators, tech-enabled investment platforms, etc.

The demand for alternative stays is no longer just limited to metros. Sizable demand also comes
from other cities such as Ahmedabad, Indore, Surat, Hyderabad, Chandigarh, etc.

Besides single-owned properties, fractional and timeshare concepts are also picking up. The image
below demonstrates the basic difference between the three.

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 13

 Single Time Fractional
Owned Share Owning

1 User 2- 15 Users Up to ~ 50 Users

Complete ownership Block time for Partial ownership

personal use

52 52 weeks 3-15 3- 15 weeks 1-2 1-2 weeks

100% equity No equity Partial equity

Owners manage it Owners have no role Owners can regulate

in management management

Owner’s responsibility Commercial hotel Generally managed by

maintenance property management

High One time payout Medium

Prices appreciate Prices appreciate Timeshare tend to

depreciate

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 14

 Holiday homes offer a unique chance to understand the local culture & cuisines, alongside exploring
the hidden gems in the region. It gives ample opportunity to interact with the locals and learn about
the indigenous specialties. This is always missing in mainstay hospitality.

Emergent
Technology
Trends in 6.0
Branded Rental
Villas in India
Technology is pivotal in the search, discovery, and finalizing of rental properties. It is bringing
property owners, management companies, and travelers/ renters closer and facilitating seamless &
smooth communication without middlemen involved. New apps and portals are coming up that have
greatly simplified the process.

Even without visiting a place, potential renters (even from abroad) can digitally view the property,
learn about the localities, and make informed decisions. Digital walkthroughs, live video calls, and 3-
D renderings greatly revamp the overall space.

Apps can be used to book personalized services at properties such as concierge, valet parking,
restaurants, cafes, private wineries, pet care, spa & wellness, etc.

The Internet of Things (IoT) is enabling property owners to enhance their offerings. Newer
technologies such as temperature modulation, advanced security, lighting monitoring, etc. can give
an elevated guest experience and enhance the overall attractiveness of the property.

Property owners and management companies can use analytics and data science to get deep
insights into customer behavior. This can help in proper customer segmentation thereby giving more
personalized services.

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 15

The Branded
Rental Villa 7.0
Ecosystem in
India
Mainstay Hospitality

Homestay Management

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 16

Real Estate Developer

Online Market Place

Investment Platform

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 17

 Mainstay hospitality companies are lured by the segment. This is a positive step, as it can greatly
organize the space, which is hitherto greatly unorganized.

IHCL (Tata-run) is the first mainstay hospitality company to enter the branded homestay segment.
Operating under the asset-light model, it manages private villas, plantation bungalows, and heritage
homes, etc.

It has an asset base of 100 properties (57 in operations while the remaining are under various stages
of development.). By 2026, it plans to add ~ 400 more units.

Property owner has to pay total fees (including marketing expense) of 18% to IHCL. Most of the
properties are located within ~ 2 hours of an IHCL hotel, which adds operational efficiency.

In the villa management niche segment, major players include Stay Vista (~ 500 villas), Saffron Stays
(~ 290 villas), and Lohono Stays (~ 200).

Online booking platforms such as Booking.com, MakeMyTrip, Airbnb, etc. are also expanding in the
premium villa rental segment. Around ~ 35-40% of the bookings come from these online platforms.

Branded Villas Client Break-Up

65-70%
Individual portal, marketing,
& corporate tie-ups

30-35%
From online portals such as
MakeMyTrip, Airbnb, Clear Trip, etc

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 18

 Average utilization rates of properties are around 33-37% with a tentative maximum limit of around
40%. Anything over 40% might lead to overutilization of resources.

Average ticket sizes per booking can range from INR 25,000- to 45,000.

In the villa management segment companies are no longer just limited to aggregation, search &
discovery, and online booking. They also actively contribute to property operations, F&B, marketing,
and branding.

Evolution of 8.0
Services

The concept of serviced living is evolving fast verticals such as health & wellness, retail, lifestyle
with new layers added each passing quarter. & fitness, entertainment, etc. The drastic shift is
Gone are the days, when serviced living primarily also rooted in the change in tourist perception
meant a cozy cottage or a villa in a verdant and expectations. Vacations are no longer just
surrounding with a small swimming pool and few meant for travel and refreshment. It is now seen in
gaming activities to relax and spend peaceful the long-term perspective of holistic well-being,
times. reduction of stress, embracing healthier habits,
and gaining an overall enriching experience.
The new serviced rental communities are
aggressively evolving by integrating other related

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 19

Health & Wellness

SPA & AYURVEDA DETOX YOGA, MEDITATION,

WELLNESS CENTERS CENTERS REIKI STUDIOS, ETC.

Lifestyle & Fitness

GYMS SPORTING SWIMMING POOLS & SALONS

ARENAS INFINITY POOLS

SLIMMING
CENTERS

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 20

Retail

CONSUMER COSMETICS & F&BS FARM-TO-TABLE

RETAIL BEAUTY RESTAURANTS

ORGANIC BREWERIES &

CAFES WINERIES

Entertainment

OPEN THEATRES CULTURAL TOURS FOOD TOURS EXCURSIONS &

TRAILS

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 21

Wellness-
themed 9.0
Branded Rental
Villa in India
In the past, wellness and spas were used as line services by
some of the villas and second-home communities to
diversify their revenue stream. However, in 2024 we will see
health, fitness, and wellness coming mainstream in the
premium rental category as well.

The demand for holistic health will rise: The meaning of wellness won’t just be limited to medical
wellbeing, curing of ailments, skin & beauty care, etc. Rather, the focus will be equally strong on
holistic well-being, feeling good from inside and staying away from unnecessary stress and anxieties
of daily lives. People will take vacations not just to have fun but also to recharge, refresh, and pick up
new lifestyle changes to lead more meaningful & productive lives. Consequently, we will see curated
packages on stress management, sleep management, weight loss, spiritual enhancements, etc. in
rental villas.

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 22

 From line extension to concept hospitality: Spas & wellness were built inside hotels and resorts in the
past to diversify and create a new revenue stream. However, now we will see new cottages, villas,
farm stay projects, etc built-in tranquil and picturesque destinations revolving around the concept of
overall well-being. The new-age wellness resorts will not be just limited to an idea of luxe property
with a slew of amenities such as spas, pools, aromatherapy, and fitness centers. Rather it will
understand the fundamental connection between nature and human beings and smartly leverage it
to have a far-reaching impact on mind, body, and spirit. From ambiance to décor to spatial designs to
the sounds & services in these set-ups, everything will be based on distinctive wellness philosophies.

Wellness to positively impact adjacent industries: Wellness will positively impact and influence other
related industries such as tourism, real estate, retail, fashion & lifestyle. We will see traditional
boundaries coming down and interplays between various industries will be visible. Wellness will work
in tandem with retailers, salons, health centers, F&Bs, etc. to offer higher values. Technology and
media will also play a larger role in aggregating the space and developing new stacks of services.

Wellness and fitness packages for hectic Business Travelers: Besides recreational and leisure
wellness, there will be a growth in business wellness retreats to cater to busy corporate travelers.
Despite busy schedules, these days business travelers do not want to lose on their fitness, lifestyle,
and wellness goals. After a hectic day, everyone wishes to relax, unwind, and pamper their body and
soul. Rental villas will actively partner with wellness providers, health clubs, and fitness professionals
to come up with holistic recreational and fitness packages and healthy dietary solutions.

Farm-to-Table Concept will Thrive: As more rental villas and ecohotels will be developed across
verdant locations in India, the concept of farm-to-table will be taken more seriously. Many of them
will grow their food, grains, wine, fruits, and dairy offering 100% natural, organic, and nutritious diets
to the guests. Food & nutrition a very important constituents of wellness and we will see an
increased focus on the same.

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 23

Conclusion: A
Positive
Disruptor of 10.0
Mainstay
Hospitality
Premium Traditional
Home Stay Hospitality

Clean & neat interiors Opulent interiors

Traditional & personalized Signature hospitality

hospitality

Specific & unique The scope of

requirements can be met customization is limited

Authentic & localized Standard experiences

experiences

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 24

The rental villa market will continue to thrive in next 5 years. This translates to around 7000
India. The rise in tourism, growth in the economy, rooms annually or a growth of a modest 4.5%. In
surge in disposable income, enhanced contrast, the demand will surely outpace the
connectivity, flexible working models, and supply.
increased transparency in bookings will push the
segment in a positive direction. If we can develop the alternative stay segment
and help it reach its true potential, it can
Besides popular tourist destinations, lush green complement the hospitality industry.
backyards located at a short distance from cities
will also see a jump in such property options. We will also notice positive growth in the new
While the size of the vacation home market is supply lines as many prominent developers are
small, when compared to the mainstay hospitality, now venturing into the holiday home and other
it will play the role of a positive disruptor. related segments such as farm stays, forest
lodges, nature cottages, etc. The entrance of big
Currently, there is a pipeline of around 27,000 players will help the segment organize further. It
villa rooms that can be transformed into vacation will also result in development of second home
homes. This can be a very positive step for communities rather than standalone homes.
mainstay hospitality as well. It is noteworthy that These communities will be laced with advanced
Hotelivate study suggests that close to ~ 35,000 features, premium leisure facilities, top tier
active hotel rooms will enter the market in the securities, etc.

Research Methodology
In the research, “Bottom to Up” approach has been adopted to evaluate the size of market, growth
rates, demand drivers, future growth potential, etc.

Multiple credible secondary research resources such as annual reports of individual companies,
industry reports, investment reports, and media reports have been reviewed.

Special attention has been given to reports related to key emerging players such as Saffron stays,
Ama stays, Stay vista, Lohono stays, etc.

The current market size has been calculated based on the detailed report reviews.

The future projection has been done by summing the growth plans of individual entities.

To further gain deep insights on the market, we have interviewed multiple industry stakeholders from
hospitality (both mainstream and alternative), real estate, and tourism industry.

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 25

 Sources
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enters-into-homestays-segment-with-saptpuri-in-varanasi/92165799

https://images.assettype.com/bloombergquint/2022-12/2b275193-53bc-4410-b54d-
fd9a1c9233f0/Motilal_Oswal_Indian_Hotels_Company_Update.pdf

https://investor.ihcltata.com/files/IHCL_Investor%20Presentation_v30.pdf

https://www.hotelierindia.com/operations/makemytrip-joins-hands-with-lohono-stays-to-grow-the-
luxury-homestay-segment

https://www.adgully.com/elivaas-raises-us-2-5m-in-seed-funding-139290.html

https://www.outlookindia.com/business/domestic-tourism-will-continue-to-be-strong-with-india-
g20-presidency-thomas-cook-cmd-madhavan-menon-news-288160

https://tourism.gov.in/sites/default/files/2023-
07/India%20Tourism%20Statistics%20at%20a%20glance%202023%20-
%20English%20version_0.pdf

https://www.statista.com/statistics/207012/number-of-domestic-tourist-visits-in-india-since-2000/

https://nangia-andersen.com/wp-content/uploads/2023/04/Inbound-Tourism-in-India.pdf

https://www.travelandtourworld.com/news/article/destination-wedding-boom-indian-hospitality-
allures-industry/

https://travel.economictimes.indiatimes.com/news/research-and-statistics/figures/business-travel-
witnesses-strong-comeback-in-india-with-83-yoy-growth/96127879

https://luxebook.in/best-places-to-go-on-a-luxury-workation-in-india/

OUTLOOK OF BRANDED RENTAL VILLA MARKET IN INDIA 26

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