Second Home Market Growing at 23% CAGR, says 360 Realtors in its Quadrant Report

New Delhi, March 20, 2025: We caught up with Ankit Kansal, MD, 360 Realtors, a real estate advisory that has unveiled the Quadrant Report on Second Home Destinations in India. Numerous leading second home destinations have been placed across four quadrants: Leader, Challenge Child, Underdog and Work in Progress. Kansal shared some valuable insights from the report.

What has been the motivation behind compiling the Second Home Quadrant report?

As a real estate advisory, we are committed towards creating quality research, data, and insights on India’s growing second home market. There are many consultancies and advisories, which create large volumes of business reports, market reports, white papers, infographics, etc. on residential and commercial real estate. However, there is very limited research and data-backed perspectives on second homes. This is where as a credible brand we are stepping up and trying to create authentic and high-quality research. Our Second Home Quadrant Report is part of our endeavour to spread data-focused awareness about the segment. It will help to evaluate the competitive positioning of the various second home destinations in the country, besides offering analytical insights.

What has been the methodology behind the Quadrant?

The Quadrant has been prepared following a rigorous methodology. We have identified a host of parameters which were further split into two broad categories. On the X axis we have considered parameters such as current, tourism market size, branded hotels and rental villa supplies, average land price, past price appreciation trends, total branded second home supply lines, etc. These parameters indicate existing robustness of the market. In the Y axis, we have taken factors such as projected land price appreciation, hotel supply lines in future, rental yields, hotel pipeline, infra pipeline, etc. These factors mainly demonstrate the future potential. For each specification, a weighted average score has been given to every destination(s). This is followed by cumulative scoring for the X & Y axis, and accordingly placing them in the Quadrant.

Can you enlighten us about the categories used in this Quadrant? Also, what do these categories signify?

The four categories are: Leaders, Underdogs, Challenge Child, Work in Progress. Leaders are the top markets, which are growing fast and will continue traversing higher momentum trajectories. In our Quadrant report, three destinations have featured in the Leader Quadrant namely, Ayodhya, North Goa, and Sindhudurg.

The Underdogs are currently nascent markets but will soon pick up. Some of the probable Underdogs can be Alwar, Rishikesh, and Narendra Nagar.

Markets like Shimla and Haridwar are in the Challenge Child category, doing good but may not continue the momentum. For instance, take the case of Shimla. The hill station has a large second home market with over 550 units. Property prices are rising at around 6-7 per cent annually. Shimla or the Queen of Hills as it is sometimes called has traditionally attracted second home buyers from NCR and Chandigarh. However, it is noteworthy that Shimla might face intense competition with a host of other emerging destinations such as Solan, Kasauli, Chail, etc. This could undermine growth.

Lastly, the Work in Progress, wherein we have a bunch of emerging destinations such as Dehradun, Chamba & Tehri, Lonavla, Coorg, Siliguri, Darjeeling, Solan, Kasauli, etc.

Can you highlight more about the Work in Progress? Are these newcomers with strong growth potential?

Work in Progress are destinations which have started making noise as second home markets. Many of the Work in Progress destinations mightn’t be second home and vacation rental markets in conventional sense. However, now with improved infrastructure and increased spotlight, demand is picking up.

For instance, take the case of markets like Darjeeling and Siliguri, which are popular hill stations in North Bengal, However, no one would have contemplated owning second home villa or a cottage, four-five years back. This trend is reversing, as the region is becoming a sought-after second home destination in East India. Currently the size of the branded second home market is over 300 units, with an annual price appreciation tune to 7 per cent. With a daily tourist volume of ~ 2500 units, there is plenty of potential for vacation rental market to flourish as well. The current rental yield is modest at 4.5 per cent but will pick up with the rise of alternate hospitality.

In the southern parts of the Western Ghats, Coorg is a popular tourist destination. In recent years, the idyllic town alongside nearby regions such as Madikeri & Chikamagalur is showing the potential to emerge into prominent second home destination. The branded second home market is miniscule with around ~ 50 units. Nevertheless, there is visible appetite for farm stays, coffee plantation bungalows, gated villas, etc.

How will be the outlook of Second Homes in India in 2025

As a category, second home will continue to rise fast in India. The current market is sized at over $3 billion, growing at a CAGR of 23 per cent. Second homes in the form of farms stays, gated villas, branded plots, premium bungalows etc. are thriving all over India. Average homebuyers are now understanding the significance of staying in idyllic environs and bonding well with nature. There is spurt in demand for nature centric & wellness driven lifestyle. As the demand is accelerating, besides niche players big players are also drawn towards the segment. Many big developers such as DLF, Tata Housing, Axon, Isprava, Lodha, etc. are active in the space.

From where can one access the report?

One can download the report for free from our website. The complete report has been posted there.