Diu’s Coastal Renaissance: How a Quiet Island Became India’s Next Big Second Home Destination

Once a sleepy island tucked away in the Arabian Sea, Diu is now on the cusp of a remarkable transformation. Thanks to the Indian government’s renewed focus on sustainable development and eco-friendly tourism, this tranquil Union Territory is rapidly emerging as a vibrant destination for second-home buyers, investors, and vacationers alike.

A Vision Unveiled: From Hidden Gem to National Spotlight

In a recent landmark visit, Prime Minister Narendra Modi inaugurated and laid foundation stones for multiple projects in Diu, amounting to over ₹2,580 crore. The government’s mission? To transform Diu into a beacon of high-tech infrastructure, a hub of the blue economy, and a model for eco-conscious tourism in India.

As the Prime Minister highlighted, Diu is not just about beaches and history anymore—it’s about innovation, opportunity, and sustainable living. The island was notably India’s first city to run on 100% renewable energy during daytime, setting an example for cities nationwide.

The Nagarsheth Group: Betting Big on Diu’s Future

One of the frontrunners riding this wave of development is the Nagarsheth Group, a prominent Diu-based real estate developer. According to founder Dhaval Upendrakumar, Diu’s appeal has grown dramatically due to increased government initiatives, rising tourist interest, and its strategic location near Somnath Temple.

With plans to invest over ₹200 crore in upcoming projects, the Nagarsheth Group is expanding its footprint with both plotting and residential housing developments. After delivering two successful projects, they’re now eyeing further expansion into Daman, Goa, and even Delhi.

Second Homes, First-Class Living: Trends in Diu Real Estate

The Diu real estate market is seeing a major surge, particularly in seafront villas, row houses, and land plots. The recent relaxation in Coastal Regulation Zone (CRZ) norms has opened up vast stretches of coastline for development, allowing buyers to build right by the ocean.

“Today’s buyers want homes that face the ocean. They want to rent them out, especially through platforms like Airbnb,” says Dhaval. “It’s the Goa trend all over again—but now, in Diu.”

Demand is strong among locals living abroad, who purchase homes for seasonal stays and rent them out the rest of the year. With an average rental yield of 5-8%, along with 10-11% annual appreciation, Diu presents an attractive investment.

A Coastal Paradise with Global Appeal

Why should someone from North India—or any other part of the world—consider investing in Diu?

“Diu is safe, clean, and peaceful,” says Dhaval. “It has zero crime, low population density, beautiful colonial-era architecture, and world-class infrastructure under construction. The Diu Airport is expanding, the roads are spotless, and hospitality giants like Indian Hotels are already making their presence felt.”

With foreign buyers, NRIs, and Indian citizens showing strong interest, Diu is now considered a serious contender to Goa in the second home space. Plus, regulatory reforms make it easy for individuals from any state or UT to buy property here.

What Lies Ahead?

As the Union Territory gears up to become a model of modern coastal development, it remains anchored in its charm, tranquility, and unique identity. Diu represents not just a real estate opportunity—but a lifestyle, a legacy, and a leap toward the future.