In a notable shift that could add heft to the dynamics of the real estate market, new emerging locations are perfectly catching up with the interest of homebuyers. This shift in preference has resulted in a significant increase in demand for luxury homes in offbeat locations, especially in the hills like Himachal Pradesh and Uttarakhand, and other offbeat locations amidst nature.
The new work culture has significantly influenced the preferences of homebuyers, with many now considering the purchase of holiday or second homes in scenic mountainous and hilly regions. This change in mindset is a clear indication that homebuyers are prioritizing relaxed and natural surroundings when making a purchase. The trend is not just about location, but rather an aspiration for a better quality of life and a greater emphasis on health and wellness. As a result, hills and offbeat locations have become the preferred choice amongst homebuyers.
Developers are recognizing the growing importance of maintaining a healthy lifestyle and are designing projects to meet the demands of modern homebuyers. Luxury properties in hilly or remote areas are becoming increasingly popular among homebuyers due to the promise of a peaceful and healthy lifestyle, with a perfect balance of urban amenities and relaxed living. Although these properties are often considered holiday or second homes, buyers prefer easily accessible locations that are close to major cities or their primary residences.
Amar Kapoor, CEO, Terra Grande by Eldeco Group: “The demand for luxury housing is increasing rapidly in nearby hill stations due to the development of infrastructure, people’s desire for improved living standards and well-planned connectivity. The changing lifestyle of homebuyers is also driving the demand for luxury housing and villas in hill stations. One noticeable trend is the growing popularity of hills as a destination for holiday homes or second homes due to the easy connectivity by road, rail, and air. Cities like Kasauli and Rishikesh provide luxury living in nature and at the same time being easily connected to urban towns helps in planning short trips over long weekends. The fine balance is attracting people seeking a peaceful and serene lifestyle.”
The demand for holiday homes and second homes is increasing, particularly in hilly areas that offer better connectivity and infrastructure. These micro-markets in the hills have great potential for price appreciation and rental income, making them attractive to buyers and investors. Himachal Pradesh and Uttarakhand are popular choices for those seeking luxury holiday retreats in the hills. Many developers are taking advantage of this trend by building high-end properties in these areas. The Eldeco Group, a realty firm, recently announced plans to develop luxury holiday homes in the hills and tourist locations. Their vertical Terra Grande by Eldeco is building 80 villas in the Sirmaur district of Himachal Pradesh, and they also plan to develop similar properties in Rishikesh.
Kapoor said, “The real estate sector in these locations is driven by both end-users and investors. Ultra-high net-worth individuals (HNIs) are buying luxury villas in tourist destinations for self-use and investment purposes, while the aspirational class is interested in investing in properties in holiday destinations due to their evolving lifestyle, improved quality of life, and natural living potential for passive rental income. Developers are strategically acquiring land and introducing new supplies, further propelling the growth of the realty sector in hill stations.”
Hill destinations are attracting a diverse range of buyers, from young professionals to retired individuals looking for second homes or retirement properties. Even NRI buyers are showing interest in these locations for luxury homes. As per CREDAI’s report predicting a 36% urbanization rate this year and a projected 50% by 2050, offbeat locations in hill areas appear to be focal points for homebuyers seeking a balance between urban amenities and a more relaxed lifestyle. As a result, homebuyers are increasingly drawn to the untapped potential and promising prospects offered by these emerging real estate hotspots.
