Rise of Leisure Living: Hill Stations Drive Second Home Boom

New Delhi, June 25, 2025: The concept of a second home has become a mainstream aspiration with wellness, flexibility and quality living becoming central to homebuying decisions.

As more and more buyers are seeking calmer locations to live, work or unwind, the tier 2 cities, notably the hill stations, are seeing a real estate renaissance. With more buyers investing in second homes, the property demand in these cities is surging, paving the way for capital appreciation and economic growth.

A MagicBricks report 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. The trend of second homes in these cities is heating up, emerging as a peaceful retreat in the hills, a remote-work escape or a weekend getaway that doubles as a long-term asset.

The data further highlights a sharp uptick in demand for hill station properties with Nainital emerging as the frontrunner, registering an impressive 49.43 per cent YoY growth in buyer interest, making it the most sought-after destination for residential real estate in north India.

Shimla followed closely with a 30.49 per cent YoY increase while Rishikesh and Dehradun witnessed a surge of 30 per cent and 25.55 per cent, respectively. This trend signals a broader shift in buyer sentiment driven by a desire for clean air, scenic vistas and wellness-centric living towards tranquil, high-altitude locales as preferable alternatives to the congestion of traditional urban markets.

“Second homes are becoming strategic lifestyle investment. As metro cities grow increasingly congested, many buyers are gravitating towards tier 2 and 3 cities that offer a rare blend of affordability, peace, and premium living,” says Manit Sethi, Director, Excentia Infra.”

“Dehradun, in particular, is emerging as a preferred luxury second-home destination. Homebuyers migrating to this city are drawn to opulent amenities, eco-conscious design and low AQI zones where serenity, wellness and spiritual balance converge. With enhanced connectivity via expressways and airports, the demand for weekend retreats, rental villas and gated communities is accelerating, and this momentum is only set to grow.”

Sakshee Katiyal, Chairperson, Home & Soul, says, “A paradigm shift can be observed in how second homes are being perceived today. They are seamlessly blending leisure with functionality, going beyond just mere weekend escapes.”

In hill stations like Rishikesh, “the demand is rising for hybrid-ready homes equipped for remote work, wellness and long-term stay. Buyers are prioritising forest-facing balconies, ergonomic interiors and tech-enabled convenience, making these homes suitable for both rejuvenation and productivity”.

She added, “Simultaneously, these locations are witnessing a surge in demand for luxury villas, plotted developments and premium residences, indicating that second homes are no longer just about escape but about elevated living. With the rise of managed living, concierge services and co-living formats, they are transforming into fully integrated ecosystems for leisure, lifestyle and long-term comfort.”

These new-age homes prioritise eco-conscious architecture, high-end amenities and hospitality-style maintenance services, offering a seamless lifestyle experience in scenic, high-altitude locations. No longer limited to the affluent elite, the demand is expanding to include HNIs, NRIs as well as aspirational middle-income urban families who are investing in second homes not just for leisure but for wellness, rental income and long-term value creation.

“The Chandigarh periphery has emerged as a strong contender in north India’s second-home market. Areas like New Chandigarh and Zirakpur are drawing increased attention for their balance of well-developed infrastructure, relative affordability and peaceful surroundings,” says Piyush Kansal, Executive Director, Royale Estate Group.

“Improved connectivity to Delhi and key cities in Punjab further adds to their appeal. Over the past year, we have also seen rising traction of NRIs and working professionals who see long-term promise in owning a second home in this region. Hence, we foresee the segment continuing its growth trajectory in future too.”

Therefore, as wellness, flexibility and sustainable living move to the forefront, tier 2 hill towns are evolving into long-term lifestyle destinations rather than seasonal retreats. With improved infrastructure, rising capital appreciation and an increasing appetite for managed, luxury living, these regions will continue becoming powerful growth corridors in the real estate landscape.