India, Aug. 30 -- Once known primarily as a weekend escape, Alibag is steadily transforming into one of Maharashtra's important real estate markets. In recent years, several prominent developers have launched villa and plotted development projects in the coastal town, signaling a shift in its identity. What was once a quiet leisure destination is now being redefined as a mass-market opportunity and increasingly, as an "extension of South Mumbai," according to real estate experts.

While Alibag isn't officially part of South Mumbai, developers and consultants agree that it's rapidly evolving in that direction, thanks to improving connectivity and rising interest from homebuyers.

According to real estate consultants, Alibag's appeal has in...