Alibaug, Lonavala, and Khandala have gained significant traction among the emerging real estate hotspots, offering luxury living, according to real estate platform Magicbricks Insights. As real estate investments remain largly concentrated in metro cities, particularly the Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR), evolving buyer preferences and enhanced infrastructure are encouraging investors to explore destinations beyond major urban centres, says the report.

Over 13% of Alibaug’s current residential supply is priced above ₹3 crore, up from 23% a year ago, indicating an accelerated uptake in 2024, the Magicbricks data shows. Similarly, in Lonavala and Khandala, more than 50% of residential supply is valued over ₹3 crore, a shift from 75% at the beginning of 2024, reflecting active investor participation.

"The rising demand for luxury villas, premium plotted developments, and beachfront properties signals a clear shift in investor sentiment toward scenic, high-value locales beyond Mumbai," says the report.

In 2024, residential properties in Alibaugh appreciated 13.8% to an average of ₹9,860 psf, while the average prices in Lonavala and Khandala were observed to be ₹12,011 psf.

Alibaug, known for its beaches and tranquil environment, has seen high-net-worth individuals buying premium properties in the region, thanks to improved connectivity, including upcoming infrastructure projects.

Lonavala is also witnessing increased demand for vacation homes, driven by its pleasant climate, proximity to Mumbai and Pune, and expanding luxury real estate market.

Mohit Malhotra, Founder & CEO of Mumbai-based Neoliv said Alibaug is no longer just a weekend escape, but is fast emerging as Mumbai’s answer to the Hamptons. "Enhanced connectivity through the Mumbai Trans Harbour Link (MTHL) and Ro-Ro ferry services has transformed this coastal town into a high-demand real estate destination. What was once a quiet retreat is now a thriving hotspot for luxury living and investment. The region is witnessing an unprecedented surge in demand, driven by ultra-luxury villas, premium plotted developments, and second homes. With its serene landscapes, pristine beaches, and close proximity to Mumbai, Alibaug is attracting high-net-worth individuals, celebrities, and investors looking for long-term value appreciation,” says Malhotra.

This is in stark contrast from metro cities, which are seeing a slowdown in sales. Skyrocketing residential prices coupled with geopolitical headwinds have slowed the Indian housing market’s bull run in the first quarter of calendar year 2025, according to real estate consultant Anarock.

The year's first quarter saw sales drop 28% across the top 7 cities against the same period in 2024, shows Anarock data. Around 93,280 units were sold in Q1 2025 in the top 7 cities, in sharp contrast to all-time high sales of over 1.30 lakh units in Q1 2024.

Delhi-NCR saw a 20% decline in sales from approximately 15,650 units in Q1 2024 to around 12,520 units in Q1 2025. Mumbai Metropolitan Region (MMR) saw the highest housing sales with about 31,610 units in Q1 2025, a decline of 26% over Q1 2024 when around 42,920 units were sold.

Bengaluru saw sales of 15,000 units sold in Q1 2025, a 16% decline compared with Q1 2024 when 17,790 units were sold. Hyderabad saw about 10,100 units sold in Q1 2025, a 49% decline over Q1 2024 when around 19,660 units were sold.

residential properties

As metro housing sales dip, Alibaug and Lonavala shine in luxury realty