Homestays for Sale in India
India has become one of the fastest-growing markets for boutique accommodations, and homestays sit right at the centre of this boom. Buyers today aren’t just looking for a house—they want a hospitality-ready property that blends culture, lifestyle, and income generation. Whether you're an investor, a first-time hospitality entrepreneur, or someone shifting toward nature-driven living, homestays for sale in India offer a unique mix of business potential and personal satisfaction.
Why Invest in a Homestay in India?
Owning a homestay isn’t simply a real-estate purchase; it’s a hybrid of property investment and experiential tourism. These are the real advantages:
Growing Tourism Demand
Domestic travel is exploding, with travellers preferring intimate stays over generic hotels. This demand makes homestay properties consistent revenue generators.
Lower Operating Costs
Compared to resorts or hotels, running a homestay requires less staff, lower maintenance, and simpler operations.
Flexibility in Use
Run it full-time / Use it seasonally / Keep it for personal stays / Lease it to a management company
Strong ROI in Popular Destinations
Hill stations, coastal towns, wildlife zones, and spiritual hubs show higher occupancy and premium pricing.
Best Locations to Buy Homestays in India
Location determines both charm and profitability.
Himachal Pradesh & Uttarakhand
Ideal for mountain-view homestays, eco-retreats, cottages, and wooden chalets. High demand from domestic travellers.
Goa
Perfect for beachside villas, Portuguese houses, and boutique homestays close to tourist hotspots or hidden inland villages.
Kerala
Backwaters, tea estates, and Ayurvedic tourism make homestays extremely profitable year-round.
Rajasthan
Heritage-style homestays, havelis, and desert stays have a consistent international market.
Northeast India
Still emerging but extremely promising for long-term capital appreciation and experiential tourism.
Types of Homestays Available for Sale
Different buyers look for different formats. Here’s what’s common in India:
Fully Operational Homestays
Ready-to-run properties with existing bookings, reviews, staff, and permits.
Renovation-Based Homestays
Older, character-rich homes that can be turned into boutique stays with the right design.
Eco-friendly Homestays
Mud houses, bamboo cottages, off-grid homes, and sustainable retreats.
Luxury Boutique Homestays
High-end villas, private bungalows, and premium experiential stays.
Farmstay Properties
Agricultural land + living space for experiential rural tourism.
Legal Requirements & Compliance for Homestays in India
Regulations vary by state, but common requirements include:
Registration with the state's tourism department
Fire safety compliance
Local municipal permissions
FSSAI registration if serving meals
Commercial electricity/water connections (in some regions)
Hill stations and coastal zones may require additional environmental clearances depending on the size of the project.
Average Price of Homestays for Sale in India
Prices vary dramatically by region, size, and tourism demand. Broad ranges:
Himalayas (Himachal/Uttarakhand): ₹50 lakh – ₹6 crore
Goa: ₹1.2 crore – ₹12 crore
Kerala: ₹60 lakh – ₹5 crore
Rajasthan: ₹80 lakh – ₹7 crore
Northeast: ₹40 lakh – ₹3 crore
Operational homestays with established branding always command a premium.
What to Look for Before Buying a Homestay
Evaluating a homestay is both an emotional and economic process. Key considerations:
Location & Accessibility
Tourist hotspots, road connectivity, and views matter more than the number of rooms.
Revenue History
If it’s an existing homestay, check occupancy, ADR (Average Daily Rate), and seasonal trends.
Infrastructure
Parking, water source, sewage, power backup, and internet availability are non-negotiable.
Licenses & Approvals
Cross-check all permits to avoid legal headaches.
Scalability
Room for expansion can significantly boost long-term returns.
Frequently Asked Questions
Are homestays profitable in India?
Yes. With proper management, many earn stable monthly revenue and outperform regular rental homes.
Do I need a commercial license to run a homestay?
Most states allow residential properties to operate as homestays with simple registration.
Can foreigners buy homestays in India?
They face restrictions unless they hold resident status. Investments through companies follow different rules.
How to Assess ROI of a Homestay
A practical formula investors use:
(Annual Revenue – Annual Expenses) / Total Investment = ROI
In India, a well-run homestay typically delivers:
– 8–15% rental yield
– 3–8% yearly capital appreciation, depending on region
Prime properties in Goa, Himachal, and Kerala often outperform these averages.
Traveller behavior shapes what sells. The top trends:
– Eco-stays and nature-driven hospitality
– Places with work-from-anywhere setups
– Boutique design instead of mass-market layouts
– Pet-friendly spaces
– Privacy-oriented stays like villas or cottages
Buying with these in mind increases long-term resale value.
Trending Buyer Preferences in 2025
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