From Goa to Ayodhya: India’s hottest second home destinations ranked
Once believed to be a lifestyle upgrade for the rich & affluent, second homes are gaining widescale popularity, according to the Second Home Quadrant Report.
Ayodhya, Sindhudurg, and North Goa have been placed as Leaders in quadrant. These are big markets with explosive growth potential.
Second home and vacation rental market in India is growing at a staggering pace with the current market sized over USD 3 billion. Once believed to be a lifestyle upgrade for the rich & affluent, second homes are gaining widescale popularity, according to the Second Home Quadrant Report, released by real estate advisory firm 360 Realtors in partnership with Axon Developers.
The Indian economy continues to expand, leading to rise in the disposable income. New crops of high and high-middle income households comprising corporate executives, professional advisories, doctors, business owners, start-up enthusiasts, media persons, realtors, public servants, are emerging. These are well-heeled Indians with refined tastes and a capacity to spend.
This is spurring demand for professionally-managed, comfortable, and premium residential market. There is growing preference to lead a more balanced, sustainable, and nature-centric living. Consequently, properties such as second homes, cottages, and serviced apartments amidst scenic destinations in India are becoming very popular. Apart from owning a home in the cities, many are opting for a second home option(s), wherein they can periodically go to shun hectic urban lives and avoid congested roads and traffics for a while.
The growth in the market is propelled by a slew of factors such as rise in income, demand for wellness-driven lifestyle, increase in staycations & remote working culture, etc.
“There is no dearth of data, insights, and research on residential, commercial, and retail real estate in India. However, when it comes to concept realty such as second homes or vacation rental industry, there is limited data-backed information available. To bridge the gap and create more analytical awareness, we churn out a lot of quality analysis and research reports on the subject. Our recent Second Home Quadrant Report is an extension of our endeavour,” said Ankit Kansal, MD, 360 Realtors.
“We have seen such quadrant style reporting in IT, marketing, and business strategy, and now we are introducing the same for the second home industry with the key objective to spread actionable yet easily consumable & interesting insights,” added Kansal.
The second home quadrant report has covered a wide range of destinations including Goa, Sindhudurg, Dehradun, Rishikesh, Narendra Nagar, Haridwar, Ayodhya, Coorg, Darjeeling, Tehri, Alwar, and much more. These locations have been placed across four quadrants: Leaders, Challenge Child, Work in Progress, Under Dogs.
“Ayodhya, Sindhudurg, and North Goa have been placed as Leaders in quadrant. These are big markets with explosive growth potential. For instance, take the case of Ayodhya. Land prices have risen by around 22-25% in the past 12 months. Numerous big developers have either launched or contemplating big ticket entry in the temple town. A large number of property buyers desire to own a home in Ayodhya,” said Kansal.
Saurabh Vohara, Founder & CEO of ALYF, said, “India’s second home market is not just about lifestyle, it’s also a strategic investment driven by accessibility and cultural resurgence. The Mumbai-Goa RoPax ferry and highway expansion are boosting coastal real estate, while Ayodhya’s rising global footfall, with events like the Maha Kumbh drawing 400 million pilgrims, highlights the power of pilgrimage tourism. With government-backed infrastructure enhancing connectivity, both leisure and spiritual hubs are becoming high-yield investment destinations. Second homes not only offer the flexibility of personal use but also generate rental yields of 6-8%, making them a compelling asset class.”
North Goa with its slew of picturesque beaches such as Mandrem, Ashwem, Vagator, Morjim is one of the most coveted second home markets in India. Plenty of natural beauties, popular cafes, and frenzy night lives make the region a perfect destination to own a holiday home or villa. Property prices have risen in North Goa at the rate of around ~ 28 to 35% in the past 12 months.
Adjacent to North Goa, Sindhudurg is also emerging as a bustling second home & holiday villa destination. Sindhudurg was mostly a weekend travel destination of Maharashtra. However, with the opening of the MOPA airport (~ 30 mins), it has emerged as the next big hub for branded land parcels, cottage, villas, etc. The current supply of second homes are pegged around ~ 3800 units. Sindhudurg is still cost effective compared to Goa, as land parcels are available at the sweet spot of Rs 1800-2500 PSF. However, as prices are surging at 24% annually, this might not be the case in future.
Market like Rishikesh, Alwar and Narendra Nagar are Underdogs. They have nascent second home market but are growing fast. Many second home property investors are buying properties in the stretch between Rishikesh & Narendra Nagar intrigued by improved connectivity, tranquil weather, and celestial natural beauties. The region is also seeing a rapid influx of wellness ventures, Ayurveda spas, spiritual retreats, etc. land prices have risen by 9.5% in the past 12 months.
Likewise, Alwar, located in the fringes of NCR, can see a lot of influx from NCR-based buyers. Property prices are moderate in the range of INR 300- 900 PSF, but is appreciating at 15-20% annually. The rentayield in Alwar is around 5-6% yearly backed by growing weekenders from nearby places.
Meanwhile the report has placed a host of locations such as Chamba & Tehri, Darjeeling, Coorg, Solan as ‘Work in Progress’. They might not be stalwarts at the moment, but with the right investment and increased efforts, can become sought after destinations in future.
Markets like Shimla and Haridwar are Challengers as their steady growth rate might decelerate in future due to intensifying competition from other alternatives.
