Chamba, tucked in the beautiful region of Tehri Garhwal of Uttarakhand and located at the intersection of the roads emanating from Mussoorie and Rishikesh, is poised to become a hub for serviced living and second homes.

As per a report by Axon Developers, as interest in Chamba is picking up, the property market in the scenic region is also set for an upswing. Presently property prices are rising at a moderate rate of 3% but can soon accelerate, given the interest on Chamba is soaring.

The region is a fertile ground for gated projects, serviced living, second homes, retirement villas, homestays, etc. Similarly, there is also huge potential for hotels, resorts, staycation, rejuvenation hotels, adventure sports, farm stays, etc.

India’s second home and serviced living market is growing at a CAGR of over 23% and is set to reach a market size of USD 4 billion by 2026, becoming one of the fastest moving categories in Indian real estate. There is growing demand amongst Indians of all age groups to spend time amidst nature to relax and rejuvenate.

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“The pandemic taught us about sustainable living and striking the right balance between our professional and personal lives. In the past, taking frequent breaks to spend time in the hills, indulge in some adventure sports or simply go on a cycle ride or a walk in nature, was wishful thinking. Today, that is not the case. People want to take a pause from their hectic lives and spend time in mountains, woods, and beaches,” says Ankit Kansal, Founder & MD, Axon Developers.

While popular hill stations in the North such as Rishikesh, Dehradun and Nainital are seeing growth in demand, there is a new-found interest in alternate locations as well.

Relatively less explored locations such as Chamba (not to be confused with a similar hill station in Himachal) are suddenly witnessing a spurt in demand. The enchanting weather, mountain peaks, and lush green unexplored valleys are giving the Himalayan hamlet a unique positioning amongst holidaymakers as well as real estate buyers.

High-end serviced living projects are available in the range of INR 8500- 9500/sq. ft. The WFH, hybrid working models and remote working is further driving demand for staycations and workcations. This has positively impacted the rental markets and pushed the rental yield to 6.5-7%, thereby further drawing investments in serviced living villas, retirement homes, and vacation villas. The Chamba and the nearby region comprising Tehri City, Rudraprayag, Devprayag, Narendra Nagar, and other locales are fertile ground for hospitality projects, resorts, wellness centers and other related establishments. Likewise, on the banks of the Bhagirathi River, one can contemplate developing yoga centers, mindfulness coaching, Reiki studios, etc.

“The region will also receive a shot in the arm after the completion of the Tehri Tunnel. The world’s longest underground tunnel (35 kms) will connect Dehradun with Tehri and reduce the commute time to 40 minutes from 2 hours,” adds Kansal.

In the coming times, the concept of staycation and rental stays will further expand in the region, thereby driving the market for real estate and tourism. As in the foothills, Rishikesh and Haridwar are overflowing with tourists, especially during weekends and summer months, the Chamba region will see further pick up in wellness, second homes, and other forms of alternate tourism.