I've heard that I'tikaf should be done in mosque by women also. But most of them perform it at home. So is it a right practice?
Allah mentions I'tikaf being done in the masjids (2:187) and that's how the Prophet himself had done it. There's no Shari' evidence indicating that it can be done in the house, female or not.
So, the proper way to do I'tikaf is to be in the masjid.
All Praise to Allah Subhanahu wa Taala and blessings of Him be on Prophet Muhammad peace be upon him His family and companions,
According to Hanafi fiqh it is recommended for women to do I'tikaf at their designated place of prayer at home,
It was narrated that sayida Umm Humayd the wife of Abu Humayd al-Saa’idi came to the Prophet peace be upon him and said, “O Messenger of Allah peace be upon him, I like to pray with you.” He said, “I know that you like to pray with me, but your prayer in your room is better for you than your prayer in your courtyard and your prayer in your courtyard is better for you than your praying in your house, and your prayer in your house is better for you than your prayer in the mosque of your people, and your prayer in the mosque of your people is better for you than your prayer in my mosque.” So she issued orders that a prayer-place be prepared for her in the furthest and darkest part of her house, and she used to pray there until she met Allah (i.e. died).(Ahmed)
Also see this answer
It is recommended for women to do i`tikaf (spiritual retreat) in a specific place in their house, a quiet room, for example, whenever they have the time and are able to do so without neglecting their family duties and other responsibilities.
Even when in one’s monthly period, it is recommended in the Hanafi school to sit in a designated place of prayer (musalla) at home, after having made wudu, and make dhikr for the time it takes to pray.
It is recommended for women to designate a place in their houses as their ‘masjid’. They can do i
tikaf there at any time, even for a brief period of time, [Radd al-Muhtar] and attain the great rewards mentioned in the hadiths for itikaf (as long as they fulfill their other worldly and religious duties, as is the case for men).
The full communal sunna i
tikaf is for the entire ten days (in the mosque, for men). This is not expected of those working or housewives, for that matter. If one is able to arrange things, and one’s husband agrees, one may perform itikaf for the entire 10 days.
However, the fiqh principle is that, “If something cannot be done completely, it should not be left completely.”
Thus, whenever free of pressing responsibilities, women should go to their place of worship, intending i`tikaf (spiritual retreat), even if only for a short amount of time, and keep themselves busy as much as possible in worship.
When she has to do something important, such as go to the kitchen or go shopping or visit a sick neighbor, she can leave her i`tikaf and return when able.
Such an i
tikaf is valid (and recommended) even outside Ramadan for women. In fact, it is best for them to intend itikaf every time they enter their place of worship (musalla) even for their daily prayer.
Allah Swt and His Messenger knows best.