Hill station homes see 8% demand rise on better connectivity, lifestyle

Buyer and investor interest in India's hill property markets has grown 8.2% YoY in Q3 2025, led by improved connectivity, lifestyle upgrades, and flexible work options, according to Magicbricks

India’s hill station property markets are witnessing renewed investor and buyer interest, with overall housing demand rising 8.2 per cent year-on-year (Y-o-Y) during the July to September period for 2025, according to research by realty portal Magicbricks.

 

What factors are driving demand in hill station real estate? 

The rise was supported by improved connectivity, lifestyle upgrades, and work-from-anywhere trends being adopted by several workplaces.

 

While places such as Ooty, Rishikesh, and Dharamshala saw the sharpest growth in user searches during the period, Dehradun, Manali, and Mussoorie recorded the highest rise in average quoted prices by property owners.

 

How are prices moving across key hill destinations? 

 

The report states that the average quoted prices per square foot across major hill destinations increased 10.3 per cent on-year, led by Dehradun at 30.9 per cent, Manali at 18.1 per cent, and Mussoorie at 11.1 per cent.

 

On the Magicbricks portal, quoted prices currently range from around Rs 5,800 per sq ft in Dharamshala to Rs 12,700 per sq ft in Lonavala.

 

“Despite a marginal 1.2 per cent dip in property listings, search activity remained strong, particularly in the Rs 30 lakh to Rs 1 crore bracket, which accounted for nearly 70 per cent of all user interest,” the company said.

 

Which property types are attracting buyers? 

Search trends also indicate that users are primarily exploring independent houses and residential plots, while villas drew significant attention in Lonavala and Ooty.

 

“With a more moderate price growth of 10.3 per cent, these markets remain comparatively affordable, positioning them as attractive destinations for both investors and end-users seeking long-term residential value,” the report stated.

 

How is the rental market performing in hill stations? 

The rental housing market also witnessed a comeback in hill stations, with Shimla, Mussoorie, and Rishikesh showing sharp jumps in demand.

 

“Places like Shimla, Nainital, and Dharamshala offered the highest rental yields, underscoring growing investor confidence in the vacation rental and second-home segment,” the report said.