Time to buy holiday home? Demand soars in Nainital, Shimla, Dehradun

                Thinking of investing in a second home away from the city? You’re not alone. A recent report by real estate platform Magicbricks shows a major 
spike in demand for properties in popular hill stations like Nainital, Shimla, Dehradun, and Rishikesh—making 2025 a potential turning point for 
lifestyle-driven real estate.
 
Whether you’re dreaming of a peaceful retreat in the hills, a remote-work escape, or a weekend getaway that doubles as a long-term asset, the data 
shows this trend is heating up.

Nainital: 49.43% year-on-year jump in residential demand.

Rishikesh: 30% jump
 
Dehradun: 25.55% rise
 
According to platform data, 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.

With more people searching for homes in the hills, inventory is getting tighter:

Nainital’s housing stock fell 21.05%
Shimla saw a 12.3% dip
Dehradun supply dropped 4.8%
Rishikesh, after a steep 13.8% decline, is now showing a modest recovery with a 5.38% rise in the last 3 months
 
Investor takeaway: This supply-demand mismatch could push prices higher in the coming quarters. Early movers may benefit from capital 
appreciation.
 
According to the report, current average asking prices on the platform remain highly competitive.
 
Nainital is priced at Rs 6,475 psf
Dehradun at Rs 5,653 psf
Shimla at Rs 7,473 psf
Rishikesh is priced at Rs 7,558 psf. 
 
"Other tourist cities such as Amritsar (Rs 5,451 psf) and Varanasi (Rs 6,200 psf) are also witnessing an upward trend in buyer interest, reflecting the 
broader appeal of culturally and spiritually significant locations. As the demand for quality living and weekend retreats rises, Magicbricks anticipates 
continued interest in these tourism-centric destinations, supported by infrastructure upgrades, wellness-focused lifestyles, and affordable capital 
values," noted the report.

Why are buyers flocking to holiday homes?

-Lifestyle: Demand for cleaner air, quieter spaces, and nature-first living
- Remote work: Flexibility to live (and work) from anywhere
-Weekend homes: A property that serves as both getaway and investment
- Rental income: Homes in tourist hotspots can be listed on Airbnb and other platforms
-Wellness living: Spa retreats, yoga spaces, and organic communities are in vogue
 
What should you consider before investing?
-Access & connectivity: Ensure roads, rail, or air links are reliable year-round
-Legal clearance: Hilly regions may have land-use restrictions
-Builder credibility: Stick to RERA-registered projects
-Maintenance: Holiday homes require care when you’re away—factor in upkeep costs
-Rental potential: Look at tourism trends in the area for rental ROI