Holiday homes now not just a hobby, but also a:Market to reach 37 thousand crores by 2026; up to 12% returns from rent

At tourist destinations like Goa, Alibaug, Kasauli, and the hills of Kumaon, people are no longer buying homes just to spend vacations. A new trend has emerged. This is ‘rental income’. That is, what was once a lifestyle decision has now become an investment strategy. Renting out homes in hill stations and coastal areas is not new, but now its scale, structure, and intent have completely changed. According to Abhay Jindal, MD of Homeland Group, the line between lifestyle and investment is blurring. Jindal says, ‘Buyers no longer choose between lifestyle and investment, they want both. They want a home that they can enjoy on weekends and earn from it the rest of the days.’ The regular income from property makes it a well-thought-out financial plan rather than just a luxury purchase. This shift is also visible in the statistics. By 2021, India’s holiday home market was $1.394 billion (₹12,976 crore). There was a surge of 88.63% compared to the pre-COVID period of 2019. According to a report by 360 Realtors, India’s second home and retirement home market is growing at an annual rate of 23.63% and is estimated to reach $4 billion (₹37,236 crore) by 2026. Staymaster’s data shows that villas included in their portfolio are booked for approximately 270 days out of 365 days in a year. This means less vacancy, more earnings. This is generating a gross rental yield of 10 to 12%. The earnings from holiday homes depend solely on location. If it’s in Goa, it will work; if it’s in Kasauli, you’ll get rent. But now this thinking has become outdated. Stemaster’s co-founder Rishi Modi explains that young travelers now consider private pools, large common spaces, and functional kitchens not as add-ons, but as basic expectations. Homes with these facilities get more bookings. Services like private chefs and housekeeping can increase revenue by 15 to 20%. Caroline Muliz, CEO of ‘The Blue Kite’, believes that professional management is essential for rental performance. 25-30% of annual rental income can be spent on housekeeping, security, and maintenance. Earnings Don’t Come Alone, You Need an Entire Team Caroline Mullis, CEO of The Kite Blue, says that dynamic pricing, marketing, guest servicing, and compliance – a homeowner cannot do all this alone. Rent has to be determined according to time and circumstances. If a guest’s complaint comes at night, it must be answered immediately. All this requires a system, not one person. That’s why platforms like The Kite Blue and Staymaster have emerged that handle everything from booking to guest checkout. The homeowner has just one job – go and stay there whenever they feel like it. Platforms like Saffron-Stage are handling booking to checkout Platforms like Airbnb have made the market transparent, making it easier to track demand. Privacy, stunning views, and low-maintenance layouts have now become essential. Devendra Parulekar of ‘Saffron-Stage’ says that luxury villas offer higher returns because there is greater demand for privacy and group stays there.