There has been a significant surge in residential demand across prominent tourist destinations such as Nainital, Dehradun, Shimla, and Rishikesh, underscoring a growing trend toward holiday homes and lifestyle investments.
According Magicbricks 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.
There is a corresponding tightening in residential supply across most of these locations, signaling rising absorption levels. Nainital’s housing stock declined by 21.05%, while Dehradun and Shimla saw supply contractions of 4.8% and 12.3% respectively. Rishikesh, after registering a sharp 13.8% drop in supply, showed signs of stabilization with a 5.38% increase in the last three months.
According to the report, current average asking prices on the platform remain highly competitive. Nainital is priced at INR 6,475 psf, Dehradun at INR 5,653 psf, Shimla at INR 7,473 psf, and Rishikesh at INR 7,558 psf. These rates offer significant value compared to metropolitan counterparts like Delhi, thus making them viable options for lifestyle-driven real estate investments.
Other tourist cities such as Amritsar (INR 5,451 psf) and Varanasi (INR 6,200 psf) are also witnessing an upward trend in buyer interest, reflecting the broader appeal of culturally and spiritually significant locations.
