Synopsis: Lately, India’s second-home market has been booming, being driven by remote work, wellness priorities, and strong investment potential. From beaches to hills and luxury retreats, this list contains a list of the top destinations that blend serenity with profitability for the modern homebuyers.
As lifestyles transform and wellness becomes a priority. This year has brought an upsurge in demand for second homes in India. Modern Indians prefer blending into serenity and scenic beauty, along with promising returns. Whether for a peaceful wellness retreat or for a smart investment, there are plenty of destinations that blend the opportunity to get peace and profitability together. This article is going to be a comprehensive study on the top Indian cities and towns that are leading the second-home trend this year
Why the boom?
India’s second home market is currently valued at 3.2 billion dollars and is expanding quickly at a CAGR of 22- 23%, the main reason for this being remote work, growth in wellness tourism, and growing middle-class affluence. Post-pandemic lifestyle changes, along with government tax relief on self-occupied properties, have made second homes not just a luxury but a smart asset as well.
Key market drivers of 2025:
- Rise in remote work options
- Increasing traffic on roads in metros
- Prioritisation on wellness, nature, and environmental sustainability
- High rental yields and appreciation potential in wellness-centric regions
The following are the Best Second Home Destinations in terms of Investment-
1. Goa
Goa continues to dominate the second-home realty in 2025, due to its iconic beaches, rich cultural offerings, and a vibrant rental market. Both North and South Goa have witnessed a property price upsurge of up to 35%, which is due to strong demand from investors and NRIs in some areas. Properties with Beach views, modern design, along being wellness retreats can offer higher returns.
2. Shimla and Mashobra
The town of Shimla – the ‘Queen of Hills‘ as it is also known, along with its neighboring town of Mashobra, are experiencing increased demand due to their climate, colonial heritage and scenic vistas of the mountains. Here, premium homes are experiencing demand from buyers looking for rejuvenation as well as access to wellness centers. Furthermore, they also provide some of the best rental yields – especially during peak tourist months.
3. Coorg (now officially known as Kodagu)
Located in Karnataka, Coorg is known for its coffee plantations, misty hills and great climate all year round. There has been a great demand for property here amongst both nature lovers and potential investors. Madikeri and nearby Virajpet are in demand with their ideal blend of beautiful scenery and peaceful living, due to their plantation bungalows and cottages.
Also read: Top 10 States in India with Best Public Transport Facilities in 2025
4. Alibaug
Being just a ferry ride away from Mumbai, Alibaug’s highlight is its stunning beachside villas and luxurious retreats. This beach town has been popular among business elites ever since Mumbai existed. It promises a mix of privacy, connectivity, and high appreciation potential. Alibaug’s realty has witnessed a rapid growth, with both rental and resale values climbing significantly in recent times.
5. Rishikesh and Dehradun
Rishikesh, known for its yoga, meditation, and peaceful location by the holy river ganga, is preferred by those who want to focus on holistic living. Here, the Riverfront properties and the wellness resorts that are able to provide tranquility are among the top choices. Just 40kms away from this holy town lies Dehradun, a town that is able to offer easy access to the Himalayas and a peaceful environment that would be ideal for both relaxation and remote work.
6. Ooty and Coonoor
In Tamil Nadu, the well-known hill station of Ooty and the neighbouring town of Coonoor have continued to remain the prime picks for those who love cool weather and tea estates. With its cottages and eco-friendly homes, these towns are able to give you the British-era feel. And such factors meet the needs of second-home buyers looking for colonial-style designs in their second homes.
Also read: Top 10 Indian States Contributing the Most to GST Revenue 2025
Other Major Destinations
Uttarakhand’s Mussoorie and Landour still retain their massive attraction, mostly for the colonial architecture and charm these two towns still offer, and for the scenery and connection to organic farming localities. Besides those two examples, you can also do your research and venture into the other emerging favourites Nainital, Kasol, McLeod Ganj, and Pondicherry. Each of these areas has been of interest to tourists and investors for their distinct nature and potential for appreciation.
| Town | Avg. Price Range (2025, per sq ft/cent) | Growth (YoY or recent) |
| Goa (North/South) | ₹2,250 – ₹90,000 | 30-66% up since 2022 (some areas 12-30% YoY) |
| Shimla/ Mashobra | ₹11,834 – ₹12,500 | 11.7–20% YoY |
| Madikeri / Virajpet | ₹857 – ₹5,500 | Stable, profitable for sellers |
| Alibaug | ₹3,538 – ₹48,000 | Luxury villas have seen a 30-35% growth over 3 years |
| Ooty | ₹3,260 – ₹15,000 | Premium spots up, overall seller’s market |
| Coonoor | ₹2,777 – ₹16,666 | Profitable trend |
Investment Potential and Market Trends
The current wellness tourism market in India is valued at over $800 billion globally, with India playing a significant part. Rental returns in prime destinations such as Himachal Pradesh range between 3-6%, while areas in Goa and Alibaug have shown even sharper appreciation.
Key investment benefits:
- Diversified asset portfolio and inflation hedge
- Tax deductions on housing loan interest
- Growing rental opportunities via platforms like Airbnb
- High resale value due to continual demand for peaceful, nature-rich escapes
Make sure you plan the following before you buy
- Budget: Set realistic financial boundaries
- Accessibility: Location or proximity to key cities and infrastructures
- Property type: What kind of place do you want, for example- Villas, cottages, apartments, or homestays
- Rental Potential: Research demand in tourist seasons
- Developer Credentials: Go for reputed builders and verified titles
The Bottom Line
Second homes have transitioned from being holiday homes into wellness investments. For many years, they promise work-life balance, a healthier environment for family, and a legacy asset that can be passed through generations. As 2025 unfolds, the trend is clear India’s second home destinations are leading a new era where nature, calm, and smart investment converge.
Written by Adithya Menon
