Liases Foras, an independent real estate research firm, has projected sharp appreciation in Alibaug’s premium property market, driven by infrastructure expansion, rising tourism, growing second-home demand and severe land scarcity. Alibaug is a coastal town, about 100 km from the South of Mumbai.
In its report titled ‘Alibaug: The Rise of Mumbai’s Premium Coastal Market’, the firm said land prices in Alibaug are expected to rise 3x-3.5x over the next five to six years, while premium villa prices could appreciate 2x-2.5x during the same period.
Infrastructure projects improving connectivity
According to the report, land values in Alibaug have increased from around ₹2,884 per sq.ft. in 2018 to ₹7,210 per sq.ft. in 2025 and are projected to touch ₹21,250 per sq.ft. by 2031.
The report highlighted that over ₹66,600 crore worth of planned and ongoing infrastructure investments are transforming accessibility and supporting long-term growth prospects in the coastal market.
The operational Mumbai Trans Harbour Link (Atal Setu) has reduced travel time between Mumbai and Alibaug to nearly 1-1.5 hours by road.
In addition, the proposed Revas-Karanja Bridge is expected to reduce travel time from Navi Mumbai to Alibaug from about two hours to around 30 minutes after completion.
Tourism and limited land supply driving demand
Tourist arrivals in Alibaug have nearly doubled from 2.2 million visitors in 2020 to 4.5 million in 2025, strengthening the hospitality and rental ecosystem.
The report noted that premium villas with modern amenities are witnessing occupancy levels of 60%-80%, while managed 4 BHK and 5 BHK villas are generating rental yields of nearly 12%.
According to Liases Foras, the key driver behind sustained price appreciation is the severe shortage of developable coastal land across approved micro-markets.
North Alibaug currently commands the highest property prices due to its proximity to Mandwa Jetty and stronger road connectivity, making it a preferred destination for luxury villa buyers. Prices gradually moderate towards Central, South and East Alibaug, with East Alibaug emerging as a long-term land banking opportunity.
The report added that rising demand for gated plotted developments, clear-title land parcels and low-density managed villa communities is expected to support long-term growth in the Alibaug real estate market.