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Property developers are looking to buy land in temple towns across Uttar Pradesh, Rajasthan, Madhya Pradesh, and the South, hoping to benefit from growing demand for real estate as the government focuses on promoting religious tourism.
Experts note that growth in religious tourism has outpaced overall domestic travel in several states in recent years, giving developers confidence in these emerging markets.“Government initiatives to improve connectivity and infrastructure are acting as major catalysts and prompting developers to look beyond traditional metros toward temple towns,” Anshuman Magazine, chairman and CEO, India, Southeast Asia, Middle East and Africa at property consultancy CBRE told ET.
“We expect sustained visitor growth across key such towns over the next few years. By 2030, we expect the development of over 9,000 new hotel rooms in these destinations.
”The boom is expected to extend beyond hospitality. Analysts predict that religious tourism growth will create opportunities in branded accommodations, retail high streets, warehousing for supply chains, and plotted residential developments catering to both end users and investors.
“Over the past two to three years, we have seen a clear structural shift in demand across spiritual cities,” said Mohit Goel, managing director, Omaxe. “Earlier, activity was largely sentiment-driven and seasonal. Today, it is backed by sustained tourist inflows, improved infrastructure and stronger civic upgrades.”The Uttar Pradesh budget for FY27 proposes Rs 150 crore for tourism infrastructure in Ayodhya and Rs 500 crore under the Chief Minister Tourism Places Development Scheme.
Cities such as Ayodhya, Vrindavan, and Prayagraj are witnessing steady traction in retail, hospitality-linked spaces, and plotted developments.“Sustained public investment and planning-led interventions have repositioned these cities from seasonal destinations to emerging economic nodes,” said Uddhav Poddar, CMD, Bhumika Group. “Importantly, demand within these cities is diversified. It includes primary homebuyers, second-home investors, hospitality-linked rental participants and organised developers building integrated commercial ecosystems within city limits.
”At the national level, the Union government is working to develop 50 top tourist destinations in partnership with states through a challenge mode, ensuring world-class facilities and connectivity.“Spiritual and heritage tourism is becoming a strong structural growth driver across Rajasthan,” said Amrita Gupta, director, Manglam Group. “Improved connectivity and tourism promotion are supporting steady, year-round footfall, which is positively impacting hospitality and real estate in tier-2 and tier-3 markets.
This momentum is encouraging local hospitality players to upgrade service standards and invest in more organised guest experiences.
”The FY26 Union budget allocated Rs 2,541.06 crore for tourism infrastructure, skill development, and travel facilitation. For FY27, the government has proposed Rs 20,000 crore for infrastructure development in smaller cities, including temple towns.“The demand for spiritual tourism has seen a clear spurt, buoyed by the government's renewed focus on developing these destinations,” said Kush Kapoor, CEO, Roseate Hotels and Resorts.
“Cities such as Ayodhya, Varanasi and Vrindavan are emerging as strong growth markets not only for hospitality but also for second homes and lifestyle-led developments.”Experts highlight that mixed-use developments, improved last-mile connectivity, and well-designed public spaces can enhance the pilgrim experience while supporting long-term livability.“What we are witnessing is the emergence of spiritual economies, where infrastructure, hospitality, mobility and public spaces evolve together to support both pilgrims and residents,” said Dikshu C Kukreja, managing principal at CP Kukreja Architects. “This creates a new kind of real estate opportunity, one that extends beyond conventional residential or commercial typologies.”
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