THE RISE OF THE YIELD-GENERATING VILLA

A clutch of full-service platforms is helping owners turn their holiday villas into income-generating assets

- Radhika P. Nair

Krishnamohan Narayan's villa in Goa's Vagator, built by luxury real estate company Isprava.

Krishnamohan Narayan doesn’t shy away from taking calculated risks. When India and the world were hunkering down indoors during the covid pandemic, the former managing director of the Indian arm of German chemical major BASF was standing on an empty plot of land in Goa’s Vagator locality. He had just finalized a ₹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.

HOLIDAY HOME, REIMAGINED