New Delhi : India’s hill station property markets are witnessing renewed investor and buyer interest, with overall housing demand rising 8.2% year-on-year (YoY) during July–September 2025, according to the latest Magicbricks research. The report highlights that Ooty, Rishikesh, and Dharamshala have emerged as the top three hill markets driving this growth, while Dehradun, Manali, and Mussoorie recorded the highest price appreciation.

The study reveals that property prices across major hill destinations grew 10.3% YoY, led by Dehradun (+30.9%), Manali (+18.1%), and Mussoorie (+11.1%). Average prices ranged from ₹5,800 per sq. ft in Dharamshala to ₹12,700 per sq. ft in Lonavala. Despite marginal decline in supply (–1.2% YoY), buyer activity remained strong, especially in the ₹30 lakh–₹1 crore segment, which accounted for nearly 70% of total demand.

Independent houses and residential plots continued to dominate buyer preference across most hill stations, while villas saw high traction in Lonavala (72%) and Ooty (31%). The rental housing market also witnessed a strong comeback, with Shimla (+43%), Mussoorie (+31%), and Rishikesh (+16%) showing the biggest jumps in demand. Shimla (4.72%), Nainital (3.87%), and Dharamshala (3.69%) offered the highest rental yields, underscoring growing investor confidence in the vacation rental and second-home segment.

While India’s top 13 Tier-1 cities registered 6.4% demand growth and 21.1% price appreciation, hill markets outperformed on the demand front with 8.2% growth, supported by improved connectivity, lifestyle upgrades, and work-from-anywhere trends. However, with more moderate price growth of 10.3%, these markets remain comparatively affordable, positioning them as attractive destinations for both investors and end-users seeking long-term residential value.