There is a surge in demand for residential properties across prominent tourist destinations, such as Nainital, Dehradun, and Rishikesh in Uttarakhand and Shimla in Himachal Pradesh, underscoring a growing trend towards holiday homes and lifestyle investments.
According to data from Magicbricks, which is an online property search platform, demand in Nainital alone rose significantly by 49.43 percent year on year (YoY) in FY25, positioning it as the most sought-after tourism destination for residential real estate investments in north India.
Closely following this trend, Shimla recorded a 30.49 percent YoY increase in buyer interest. Rishikesh saw a 30 percent rise in housing demand and Dehradun recorded a 25.5 percent increase in customer searches in FY25.
The rising interest reflects a broader shift in buyer preferences, as investors and second-home seekers increasingly prefer serene alternatives to crowded urban markets.
Market observers note that these tourist destinations present an attractive proposition for second homes and long-term investments due to their lower entry costs and robust appreciation potential.
“We’re seeing a shift in aspirations, with more buyers now looking beyond their home cities for lifestyle-led investments. Better access to information and digital platforms has made it easier to explore real estate in emerging towns. These destinations offer lower entry points and strong appreciation potential, making them a compelling choice for second homes and long-term investments,” Prasun Kumar, Chief Marketing Officer, Magicbricks, said.
The entry of reputed developers into these markets has improved buyer confidence, with quality construction and attractive pricing reshaping the residential landscape in emerging destinations, he said.
The data also showed a corresponding tightening in residential supply across most of these locations, signalling rising absorption levels.
Nainital’s housing stock declined by 21.05 percent, while Dehradun and Shimla saw supply contractions of 4.8 percent and 12.3 percent, respectively, in FY25. Rishikesh, after registering a sharp 13.8 percent drop in supply, showed signs of stabilisation with a 5.38 percent increase in the last three months.
Competitive pricing
According to the data, the current average asking prices in these tourism hubs remain highly competitive, compared to established micro-markets, like Delhi, Noida and Gurugram.
Residential property in Nainital is priced at Rs 6,475 per square feet (psf), Dehradun at Rs 5,653 psf, Shimla at Rs 7,473 psf, and Rishikesh at Rs 7,558 psf. These rates offer significant value, compared to metropolitan counterparts like Delhi-NCR, thus making them viable options for lifestyle-driven real estate investments.
Other tourist cities such as Amritsar in Punjab (Rs 5,451 psf) and Varanasi in Uttar Pradesh (Rs 6,200 psf) are also witnessing an upward trend in buyer interest, reflecting the broader appeal of culturally and spiritually significant locations.
Experts said that as demand for quality living and weekend retreats rises, there is anticipation of continued interest in these tourism-centric destinations, supported by infrastructure upgrades, wellness-focused lifestyle, and affordable prices.
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