The Andaman and Nicobar Islands are captivating, located in the Bay of Bengal, and have become a hotspot for real estate investment. With the rise of eco-friendly developments, this beautiful archipelago is attracting attention for both living and tourism. This review highlights the key towns and regions, focusing on their property markets, tourism appeal, and investment opportunities. Our analysis covers five primary locations: Port Blair, Havelock Island, Neil Island, Diglipur, and Mayabunder. Each location is rated using a 5-star system based on detailed research and market analysis.
Port Blair: The Administrative Hub
Port Blair is the administrative and commercial center of the Andaman and Nicobar Islands, shaping the demand for real estate and investment possibilities.
With its solid infrastructure, active local economy, and essential services, it serves as a key hub for residents and tourists alike. Properties here range from residential buildings to hospitality venues, catering to people seeking both short-term and long-term stays.
Real Estate Demand: ★★★★☆
Port Blair’s strategic location ensures a consistent demand for residential properties. As the entry point to the islands, it attracts professionals and government employees, leading to a growing need for homes—both rental and purchased. For instance, the occupancy rate in rental apartments often exceeds 90% in peak months.
Tourism Potential: ★★★★☆
Tourism is vital to Port Blair’s economy, featuring historical sites and stunning beaches. The demand for accommodations like hotels and guesthouses rises during peak seasons. In 2022, the region welcomed over 500,000 tourists, a number projected to increase annually by 10%.
Investment Opportunities: ★★★★☆
Investors find diverse opportunities, especially in the hospitality sector. With tourism on the rise, property values are likely to appreciate. For example, well-placed hotels in Port Blair have shown a 15% increase in value year-over-year.

Havelock Island: The Eco-Tourism Gem
Havelock Island is famed for its breathtaking beaches, clear waters, and rich marine life. This location is a hotspot for eco-tourism and luxury resorts.
The island’s natural beauty and dedication to sustainability have drawn both international and domestic tourists, resulting in a surge of luxury property developments.
Real Estate Demand: ★★★★★
Havelock Island’s allure to eco-tourists makes it a prime spot for luxury villas and resorts. The demand for high-end accommodations is rising, supported by growing sustainable tourism initiatives. One notable example is the increase of eco-resorts, which has doubled in the last three years.
Tourism Potential: ★★★★★
Famous beaches like Radhanagar Beach and Elephant Beach consistently draw large crowds. Reviews highlight Havelock as a top travel destination, enhancing its reputation and increasing tourist numbers significantly.
Investment Opportunities: ★★★★★
Investors can tap into profitable ventures in eco-friendly resorts and luxury housing. The outlook for eco-tourism in Havelock is bright; early investments could yield returns of up to 30% in just a few years.
Neil Island: The Serene Retreat
Located near Havelock, Neil Island offers a peaceful escape characterized by lush landscapes and vibrant coral reefs.
Known for its serene environment and striking views, Neil Island is perfect for those seeking calmness amid nature.
Real Estate Demand: ★★★★☆
There is a rising demand for vacation homes and eco-resorts. The island attracts tourists looking for secluded spots, increasing the need for accommodations designed to blend with the natural beauty. Inquiries for properties have grown by over 25% in the last year.
Tourism Potential: ★★★★☆
The idyllic beaches and relaxed atmosphere make Neil Island increasingly appealing to travelers seeking tranquility. Future growth in eco-tourism initiatives is anticipated to enhance its attractiveness.
Investment Opportunities: ★★★★☆
Neil Island presents various investment opportunities, primarily in eco-resorts and vacation homes. As more individuals opt for serene holidays, the value of properties here is expected to rise.
Diglipur: The Emerging Market
Diglipur lies in the northern part of the Andaman Islands, emerging as a promising area for tourism-driven real estate.
Known for its scenic beauty and rural charm, it attracts individuals interested in sustainable living and tourism.
Real Estate Demand: ★★★☆☆
As development progresses, demand for housing is on the rise, particularly as new visitors explore Diglipur's lush landscapes. Interest from local and expatriate communities is increasing.
Tourism Potential: ★★★☆☆
Diglipur remains in the early stages of tourism expansion, but with attractions like Ross and Smith Islands, there is significant potential for increased visitor numbers. Current tourist visits have increased by 15% annually as awareness grows.
Investment Opportunities: ★★★☆☆
Diglipur offers opportunities, especially in sustainable housing and manageable resorts. As infrastructure improves, property values are likely to increase.
Mayabunder: The Hidden Treasure
Mayabunder, situated in North and Middle Andaman, is one of the lesser-known areas but is quietly gaining popularity for its natural beauty and tourism potential.
With rich landscapes and a relaxed pace of life, it’s making its mark on the tourism map.
Real Estate Demand: ★★★☆☆
Though emerging, Mayabunder is drawing interest from investors and residents seeking tranquility away from busy areas.
Tourism Potential: ★★★☆☆
As an untouched paradise, Mayabunder has tremendous eco-tourism potential, appealing to adventurous travelers looking for unique experiences. The planned development of basic tourist facilities could cause a substantial uptick in visitor numbers.
Investment Opportunities: ★★★☆☆
Potential investors can explore sustainable housing projects and eco-resorts in Mayabunder. The region holds exciting prospects for growth as interest rises in less commercialized destinations.
Final Thoughts
The Andaman and Nicobar Islands are not just a scenic getaway; they are also an emerging market for real estate investment in 2025. Each area—from the bustling Port Blair to the serene Mayabunder—offers unique possibilities influenced by its tourism appeal, real estate demand, and investment potential.
The islands' stunning natural beauty and focus on sustainable development position them as an exciting frontier for eco-friendly real estate. As the tourism sector grows, the chances for profitable investments become increasingly clear. For real estate investors aiming to explore eco-tourism and sustainable living, the Andaman and Nicobar Islands offer a unique and promising environment.
As they embark on this journey through this beautiful archipelago, prospective buyers and investors can look forward to a bright future in the islands.
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