The 6% yield secret: Why some platforms are betting big on leisure corridors

₹5.2 crore purchase of a three-bedroom pool holiday villa after a short meeting with the founders of luxury real estate company Isprava.“The idea was clear from the beginning,” said Narayan, 54, who returned to India in 2019 after spending around two decades abroad. “I wanted to stay there when I had time, but the rest of the year I wanted it let out.”Narayan took possession in March 2023 and listed shortly thereafter on Lohono Stays, Isprava’s hospitality arm.

Since then, occupancy has hovered between 60% and 70%, with tariffs at around ₹30,000 a night. Narayan visits two or three times a year, typically when his children travel from the UK.

The rest of the time, bookings, pricing, housekeeping and repairs are handled by Lohono.The arrangement works well for Narayan. He was looking for a getaway that did not demand his active supervision, and would generate income that would offset holding costs rather than serve as a primary revenue stream.

He is among thousands of holiday home owners across India who are relying on such full-service platforms to maintain and let out their villas.According to The Indian Second Home Market Outlook 2025, published by Axon Developers and 360 Realtors, the market has grown from $1.39 billion in 2021 to an estimated $3.2 billion in 2025 and is projected to reach $4.1 billion in 2026. Rising disposable incomes, improved highways and remote work flexibility have channelled affluent buyers towards leisure corridors such as Alibag, Karjat, Lonavala, Himachal Pradesh’s hill towns and Goa’s coastal belt.But managing this distant asset is not easy.“The homeowners enjoy the holiday home for the first one or two years or the honeymoon phase.