Home is Where the Hill Is: Why Buyers Are Investing in Holiday Homes in Scenic Destinations

Home is Where the Hill Is: Why Buyers Are Investing in Holiday Homes in Scenic Destinations

Atish Saxena, CEO, Atmosphere - Sarvottam Hill Town

By-Atish Saxena, CEO, Atmosphere – Sarvottam Hill Town

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With fast-paced lives in urban life, owning a peaceful, serene retreat amidst nature is what many Indian homebuyers find to be their dream. Rises in demand for the holiday homes or second home in hill stations and wellness destination have seen an uptrend in recent years. Aspirations of living, lifestyle upgrade and investment potential have fueled the requirement. Amongst all these emerging locations, Rishikesh has been the newest hotspot for attracting buyers through the metropolitan hubs like Delhi-NCR.

The Surge in Demand for Holiday Homes
Second homes have changed from being a luxury investment to an everyday lifestyle asset. The COVID-19 pandemic proved to be a catalyst since it compelled homebuyers to reevaluate their preferences. As remote working makes flexible lifestyles possible, the need for a holiday home that can serve as both a vacation retreat and a productive space has become a widely popular choice.

Holiday home demand in India has reportedly increased by 15-20% in 2024 compared to pre-pandemic levels, according to a recent report by Anarock Property Consultants. In fact, locations that can be reached by driving, such as Rishikesh, Nainital, and Kasauli, have seen a continuous flow of buyers. Delhi-NCR investors have, more than ever, found themselves leading the pack for Rishikesh, which encompasses nature, spirituality, and the modern world.

Why Rishikesh is the First Priority Second Home
Rishikesh is a perfect blend of the spiritual rejuvenation and peaceful nature of the Himalayas at the foot of this range along the banks of the Ganges. For quite a few reasons, Rishikesh has been the preferred destination for a second home:

• Proximity to Delhi-NCR: It is hardly a 5-6 hours’ drive from Delhi; hence, it becomes quite an accessible retreat for most urbanites who need serenity and fresh air in the absence of too many miles.

• Spiritual and Wellness Appeal: Wellness tourism and wellness itself – be it yoga, meditation, or Ayurveda – is in. This has made the holistic well-being-seeking buyer turn to Rishikesh. Developers are inducting wellness features like meditation zones, spas, and organic farming in their projects.

• Infrastructure Development: Delhi-Dehradun Expressway has improved connectivity to Rishikesh and further reduced travel time. There is expansion in air travel options from Jolly Grant Airport. This has increased the attraction of Rishikesh as a second home destination.

• Investment Potential: With appreciation in property prices by 12-15% every year, the city promises a great return on investment. Holiday homes in the city are also giving very high rental yields with tourist and wellness seekers arriving here.

Top Developers Tap into the Holiday Home Market
Following these developments, several key property developers have turned attention toward curating holiday homes located at desirable locales, particularly like Rishikesh, so the house developed provides an absolute haven which aligns well with what every contemporary buyer needs-from sheer opulence, environment and comfortable dwellings.

• Luxury Villas and Retreats: Developers are promoting premium villas and cottages offering a panoramic view of the Ganges and hills. Amenities like an infinity pool, wellness center, and a landscape garden are becoming a norm for projects for a resort-like experience.

• Eco-friendly Design: Environmental considerations have led to buyers focusing more on eco-friendly houses and the developers are thus building their projects with solar power and rainwater harvesting and adopting more sustainable construction techniques.

• Rental Opportunities: An increasing number of holiday home buyers treat their property as an investment and source of income. Airbnb and Booking.com allow owners to let out their houses to tourists. It’s one more stream of revenue from a short-term rental yield in Rishikesh, ranging between 6% to 8% annual return.

Buyer Profiles: Who’s Investing in Second Homes?
The profile of the holiday home buyer has become far more diverse:

• Urban Professionals: Young professionals and mid-management people from Delhi-NCR are investing in holiday homes, both for leisure and as a place to work from.

• High Networth Individuals: High Networth Individuals use holiday homes as a symbol of status and as part of luxury lifestyle, with preference toward exclusive locations.

• NRIs: Non-Resident Indians also look for such market as investment opportunities as they look to have an emotional and sentimental attachment with their ‘second home’ in India.

Key Trends in Holiday Home Development
• Workation Homes: Developers are combining workspaces with vacation homes. These can be high-speed internet, study nooks, and co-working lounges for remote professionals.

• Wellness-Centric Communities: Projects now emphasize holistic living through yoga decks, wellness spas, organic gardens, and proximity to nature trails, appealing to health-conscious buyers.

• Smart Homes: Smart home technology, which encompasses everything from automation of lighting to security and energy management systems, is now the norm for high-end holiday homes.

• Community Living: Many second-home projects are now integrating community-focused spaces that foster social interaction for networking and group activities by the homeowners.

Investment Outlook: Why Now is the Right Time
Holiday homes’ demand will grow at an average pace as homebuyers from cities are expected to seek refuge from the grinds of city life. And with expressways and regional airports now being developed, locations such as Rishikesh will experience further increases in property value.

This also means an opportunity for investors-both a personal retreat that can also be monetized as a source of rental income. With the rate of tourism in Rishikesh growing by 10-12% per annum, demand for short-term stay does not lack for anything and guarantees good occupancy for holiday homes well kept.

In summary, the concept of a holiday home has shifted from a dream that many urban buyers have long cherished to a viable and commercially profitable investment for many today. Rishikesh is emerging as a highly coveted destination for second homes given its unparalleled natural beauty, spiritual significance, and better connectivity. Developers are stepping up to meet this demand with modern, wellness-focused, and sustainable living spaces to suit discerning buyers.

As the Indian real estate market continues to grow and change, holiday homes will be the epitome of aspirational living and thus the promise of peace, profitability, and well-being in the hills for a buyer.

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