India’s second home and vacation rental market has surged past $3 billion, driven by rising incomes, increased demand for wellness-focused lifestyles, the popularity of staycations, and the remote work culture, according to the Second Home Quadrant Report by real estate advisory firm 360 Realtors in collaboration with Axon Developers, as published by Financial Express.
Once considered a luxury for the affluent, second homeownership is becoming increasingly mainstream. “There is no shortage of research on residential, commercial, and retail real estate in India. However, limited data exists on niche segments such as second homes and vacation rentals,” said Ankit Kansal, managing director of 360 Realtors. “Our Second Home Quadrant Report aims to bridge this gap by providing analytical insights into this emerging market.”
The report categorizes various second home destinations into four quadrants: Leaders, Challenge Child, Work in Progress, and Underdogs.
The report identifies North Goa, Sindhudurg, and Ayodhya as “Leaders” in the second home segment due to their explosive growth potential. Land prices in Ayodhya have surged by 22% to 25% in the past year, driven by increased interest from major developers and a rising number of property buyers seeking homes in the temple town.
“India’s second home market is not just about lifestyle—it is also a strategic investment,” said Saurabh Vohara, founder and CEO of ALYF. “Infrastructure developments such as the Mumbai-Goa RoPax ferry and expanded highways are bolstering coastal real estate, while Ayodhya’s growing global appeal—exemplified by events like the Maha Kumbh, which attracts 400 million pilgrims—demonstrates the power of pilgrimage tourism. Government-backed infrastructure projects are further enhancing connectivity, making leisure and spiritual hubs attractive investment destinations. Second homes not only offer personal flexibility but also generate rental yields of 6% to 8%, making them a lucrative asset class.”
The report identifies markets such as Rishikesh, Alwar, and Narendra Nagar as “Underdogs”—emerging second home destinations with high growth potential. Investors are increasingly drawn to Rishikesh and Narendra Nagar for their improved connectivity, serene climate, and growing wellness industry, including Ayurveda spas and spiritual retreats. Land prices in this region have risen by 9.5% in the past year.
Alwar, located on the outskirts of the National Capital Region, is also gaining traction among buyers from Delhi and neighboring areas. Property prices range between ₹300 and ₹900 per square foot and are appreciating at an annual rate of 15% to 20%. Rental yields in Alwar currently stand at 5% to 6%, supported by a steady influx of weekend travelers.
Destinations such as Chamba, Tehri, Darjeeling, Coorg, and Solan have been classified as “Work in Progress.” While these locations are not yet major second home destinations, targeted investment and development could significantly boost their appeal in the coming years.
Meanwhile, established markets like Shimla and Haridwar fall into the “Challenger” category, as their steady growth may face increasing competition from emerging alternatives.
“We have seen quadrant-style reporting in IT, marketing, and business strategy. Now, we are introducing the same for the second home industry to provide actionable, engaging insights,” added Kansal.
With the second home market expanding rapidly, the report underscores the potential of this segment to become a major force in Indian real estate, offering both lifestyle benefits and solid investment opportunities.