India’s Organized Farmstay Market Slated to Cross ₹63,000 Crore by 2029

New Delhi, November 6, 2025: Marred by hectic city lives and rising pollution levels, many urban Indians are now signing up for farmstays and farmhouse plots in serene and verdant landscapes. This is pushing ahead the organized farmstay market in a spurred growth trajectory.

As per the latest study by Axon Developers, the aggregate market for organized farmstay is sized at INR 16,100 crores in 2025 and is slated to cross INR 63,000 crore by 2029, growing at a CAGR of 40.8 per cent.

There are close to ~ 17,700 farmstay units in India, spread across 150+ projects. The volume is set to reach 46,000 units by 2029, the Axon report further revealed. Area wise it amounts to 11, 140 acres currently, which can rise sharply to 37,050 acres, registering a sweeping CAGR of 35 per cent.

“Area-wise, around half of the supplies are concentrated in the Southern parts of India. This is followed by western parts of the country, which contributes to 29% of the market. The remaining is led by the North and the Eastern regions of India,” said Ankit Kansal, MD, Axon Developers.

On being asked about what is driving this market frenzy, Kansal said, “Urban fatigue is on an upswing. Hectic lifestyle and congested city neighbourhoods are affecting the overall wellbeing of average residents. There is pressing demand for wellness driven lifestyle, cleaner environs, decongested living and tranquillity. Homebuyers are now understanding how essential it is to lead a life that can ensure overall physical, mental and spiritual wellbeing. This is naturally putting spotlight on farmstays as a viable option for long & short stay.

“Many individuals are even permanently shifting to managed farmstays and using them as primary residence. The growing popularity of remote working, hybrid working and work from anywhere makes it suitable to permanently shift into tranquil destinations and live, work & play from there. In contrast to fast-paced urban lifestyle which average urban dwellers are used to, a tranquil farmstay can offer a very immersive, mindful and slow-paced living.”

The availability of lush green scenic locations in the vicinity of major Indian cities such as Nandi Hills (Bangalore), Panvel, Karajat, Alibaug (Mumbai), NH-8, Naugaon (NCR) further makes it convenient to shun hectic urban lives and shift into spacious & verdant farmhouses.

Many tourists now prefer managed farmstays for solo travels, staycations, family hangouts, corporate retreats, etc. This makes farmstay a viable asset for unlocking recurrent rental streams.

The stay in farmhouses, whether permanent or temporary makes a very interesting stay with plenty of fun-filled activities such as indulging in fresh organic foods, learn about farming activities, interact with local communities, eco-friendly stay, wellness retreats, fruit plucking, and much more. Similarly, one can opt for numerous activities such as long nature walks, swimming in local water bodies, bird and animal watching, etc.

On being asked about Axon foraying into the organized farmstay sector, Kansal said, “We are launching a mega project in the picturesque destination of Tilari, located in Konkan region of Maharashtra, at a distance of ~ 10 mins from Goa border and 50 mins from the MOPA airport. The initial project will be spread across 1,000 acres which will be strategically appended to add 3000 acres mores in next 4 years. The scenic beauties of Tilari with lakes, hills and pristine forests makes it perfect to develop world-class farm houses, cottages, wood houses, etc. The region has potential to transform into sustainable hospitality & real estate hub.”