As cities grow denser and noisier, a rising number of homebuyers are seeking refuge in the hills. The demand for holiday homes in quieter, greener locations has seen a noticeable shift, with buyers prioritising cleaner air, open spaces, and a stronger connection to nature. Destinations like Dehradun, Rishikesh, and Nainital are emerging as favourites, not just for their scenic beauty, but for the slower, more mindful lifestyle they offer. Real estate experts say the trend is being driven by a growing awareness around mental well-being and a desire to disconnect from the stress of urban living. What was once considered a luxury is increasingly becoming a necessity for city-weary families looking for peace and permanence beyond the metro sprawl.
According to a recent report by MagicBricks, demand in Nainital alone rose by a striking 49.43% year-on-year, 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% YoY increase in buyer interest, while Rishikesh saw a 30% rise, and Dehradun recorded a 25.55% increase in customer searches. The surge in interest reflects a broader shift in buyer preferences, as investors and second-home seekers increasingly favor serene, high-altitude alternatives to crowded urban markets.
Besides, better connectivity is playing a key role in turning once-remote holiday spots into viable second home destinations. Infrastructure upgrades like the upcoming Delhi-Dehradun Expressway and the Char Dham road projects are cutting down travel times significantly, making weekend getaways more practical and holiday homes more appealing. Improved road networks and expanded air routes are reshaping the perception of hill towns—what were once seen as isolated retreats are now well-linked lifestyle hubs. As travel becomes easier, demand for homes in destinations like Rishikesh, Dehradun, and beyond continues to rise, driven by both convenience and long-term potential.
Manit Sethi, Director, Excentia Infra, says, “The demand for holiday homes in tier 2 cities has seen a remarkable uptick. While metros remain key markets, emerging cities like Dehradun are gaining traction for their livability and growth potential. Homebuyers here are not just investing in property; they are securing a lifestyle enriched by serene landscapes, clean air, and a growing economic ecosystem. Hence, with increasing property appreciation and a booming residential market, we believe these cities will offer the perfect balance between financial prudence and emotional fulfilment.”
Moreover, holiday homes in popular tourist destinations are seeing strong interest not just from end-users, but also from investors looking to tap into short-term rental markets. With steady footfall driven by pilgrimage circuits, adventure tourism, and seasonal travel, locations like Rishikesh, Shimla, Mussoorie, and Bhimtal are experiencing near year-round occupancy. Platforms like Airbnb and other homestay models have made it easier for homeowners to generate consistent rental income, especially during peak travel months. As demand climbs and inventory tightens, property values in these hill towns are steadily appreciating, making holiday homes a compelling asset class for those looking to diversify their real estate portfolio.
Sunny Katyal, Co-Founder, Investors Clinic, says, “Locations like Rishikesh, Ayodhya, Dehradun, and Haridwar are witnessing a new wave of investors who are drawn to its unique mix of spiritual charm and strong rental prospects. Improved infrastructure, especially better roads and connectivity, has transformed the perception of holiday homes. They are no longer just seasonal retreats; they’re evolving into year-round assets. Buyers from metro cities are increasingly viewing these homes as dual-purpose investments, offering both personal use and attractive short-term rental income. Thus, with the consistent tourist inflow, we believe these cities will continue offering steady demand, making them a sound long-term investment opportunity.”
Therefore, the rise in demand for holiday homes is no longer just a passing trend; it reflects a deeper shift in how urban Indians perceive lifestyle, wellness, and investment. As Tier-II and Tier-III cities become more accessible, and as buyers increasingly prioritise peace, nature, and better quality of life, destinations like Dehradun, Rishikesh, and Shimla are emerging as preferred choices. These homes are now serving multiple purposes, offering a personal escape, a source of steady rental income, and a hedge against the volatility of city real estate markets.