Second home and vacation rental market in India is growing at a staggering speed with the current market sized over USD 3 billion. Indian buyers are now actively scouting for such properties in picturesque locations. What was once a fad or lifestyle upgrade for the well-heeled & selected few is seeing increased democratization, says the Second Home Quadrant Report, released by real estate advisory 360 Realtors in partnership with Axon Developers.

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.

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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.”

“India’s second home market is experiencing unprecedented growth, crossing $3 billion, with Goa at the forefront of luxury real estate. The state’s blend of scenic beauty, world-class infrastructure, and high rental yields continues to attract discerning buyers. At the same time, spiritual tourism is driving demand in Ayodhya, positioning it as an emerging real estate hotspot. This surge highlights a growing preference for second homes that offer both lifestyle and investment value. Luxury real estate, in particular, is witnessing strong traction as buyers seek exclusive, experience-driven living spaces that promise long-term appreciation,” said Aditya Kushwaha, CEO & Director, Axis Ecorp.

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.