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.

 

Magicbricks has recorded double-digit growth in buyer interest across key leisure destinations:

 

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

 

Shimla: 30.49% increase

 

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