India is witnessing a significant surge in religious tourism, which is also driving real estate demand in religious tourism centers in India, realty experts said.
According to the data, religious hubs like Prayagraj, Shirdi, Ayodhya, and Puri among others have observed a significant rise in demand influenced by thriving religious tourism.
Big spiritual events like the Mahakumbh Mela in Prayagraj and Deepotsav in Ayodhya, along with other key festivals, which are attended by millions of visitors, are also giving a boost to demand for homestays and hotels.
Data from Magicbricks shows that religious cities like Prayagraj have witnessed 28 percent YoY increase in residential real estate demand in 2024. Similarly, Shirdi in Maharashtra observed a 67% jump in the buyers’ interest, while Puri in Odisha saw a 52% surge, and Varanasi recorded 18 percent growth in the inquiries.
Experts observed this demand extends beyond self-use, as buyers explore investment opportunities for long-term gains, holiday homes, and convert them into BnBs to capitalise on the rising demand for short-term accommodations.
Data, however, also showed that despite an uptick in residential searches in Prayagraj, the supply (listings) has gone down by 15.1% YoY.
According to Magicbricks data, the average residential property prices in Prayagraj has increased 5.5% YoY from Rs 6,661 per square foot (psf) in the fourth quarter of calendar year 2023 to Rs 7,027 psf in Q4 CY 2024.
In the past one year, residential prices in Puri, went up by 30% to Rs 6,114 psf and in Shirdi, the average price remained at Rs 4,028 psf, making these cities a promising value proposition. However, property prices reduced by 5.15% in Varanasi and stayed at an average rate of Rs 6,128 psf. The reduction in prices was owing to growing supply.
Similarly, after the Ram Mandir consecration ceremony last year, Ayodhya’s residential property prices had enjoyed a notable uptick of around 30% QoQ in April-June 2024 quarter. This was because of strong investor interest and sharp competition. The land prices in Ayodhya in October – December 2024 quarter stayed Rs 8,212 psf.
Experts opined that the rising synergy between real estate and religious tourism is reforming the residential market in these tourism centres, as buyers know the potential for strong rental incomes and lifestyle investments.
Devesh Kashyap, a real estate broker based in Ayodhya, said that religious tourism cities are developing into realty hotspots for those buyers who are looking for affordable opportunities with lucrative returns in India’s growing real estate scenario.
Mukul Prajapati, a real estate broker from Prayagraj said that better connectivity and infrastructure coupled with growing tourism have catapulted the demand for residential, commercial, and hospitality properties in tourism hubs and made these cities a prime investment hub.
He said that regions that are known for religious tourism are turning into realty hotspots as big developers are also turning towards these hubs to capitalise on the growing real estate potential.
