Religious tourism in India is a significant catalyst for economic growth in today’s times, particularly impacting the real estate sector. Events like this year’s Maha Kumbh Mela explain how spiritual gatherings can totally change the local economies, infrastructure, and property markets, with a 70 per cent surge in tourism recently and over 135 million domestic visitors. The religious phenomenon is no wonder seasonal, however, there are some religious sites that gains footfall around the year.
See more: Spiritual tourism surges; sacred cities see retail boom, says report
The Maha Kumbh mela: A catalyst for urban transformation
The Maha Kumbh Mela, held every 12 years in Prayagraj, Uttar Pradesh, is recognised as the world’s largest religious gathering. In 2025, with its said unique celestial alignment, the festival attracted approximately 660 million pilgrims, necessitating extensive urban planning and infrastructure development as a result. Authorities transformed 4,000 hectares into a temporary city equipped with 150,000 tents, 3,000 kitchens, and 145,000 restrooms to accommodate the influx of visitors. This is a sign of how religious events have the momentum driving force in them to not only aid local employment but also improve infrastructure.
Economic impact on local and national levels
The 2025 Maha Kumbh Mela significantly boosted India’s economy, contributing an estimated ₹3 lakh crore (approximately $36 billion), which accounts for about 6.5% of the national GDP.
Breakdown of economic contributions:
- Tourism and hospitality: ₹1.2 lakh crore ($14.4 billion)
- Retail and handicrafts: ₹80,000 crore ($9.6 billion)
- Transportation and logistics: ₹30,000 crore ($3.6 billion)
- Infrastructure and public services: ₹1 lakh crore ($12 billion)
Infrastructure development and real estate growth
The preparations for the Maha Kumbh Mela led to substantial infrastructure enhancements in Prayagraj, mentioned below:
- Road expansion: Over 200 roads were widened.
- New constructions: 14 flyovers, 9 underpasses, and 12 corridors were constructed.
These developments not only facilitated the event but also left a lasting impact on the city’s infrastructure, improving transportation overall.
Broader implications of religious tourism on real estate
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Increased demand for accommodation
It is obvious how religious tourism drives demand for various types of accommodations for visitors, including hotels, guesthouses, dormitories and rental properties, so cities like Vrindavan have experienced significant property value appreciation, especially in areas close to major temples. As a result, the developers invested heavily in the residential and commercial projects to cater to the influx of pilgrims and tourists expected during religious events.
Emergence of new investment opportunities
The surge in religious tourism has opened avenues for investments in:
- Hospitality sector: The development of hotels, dormitories, stays and resorts.
- Retail spaces: Establishment of shops and markets catering to pilgrims’ needs, also aiding the local businesses.
- Residential projects: Construction of apartments and housing complexes for long-term stays, for year-long tourism.
For instance, the development in Ayodhya, Varanasi, and other religious hubs has attracted significant real estate investments.
Real estate booms in religious cities
- Ayodhya: The construction of the Ram Temple has transformed Ayodhya into a real estate hotspot. Developers are launching residential projects to meet the growing demand from devotees and tourists. The post-Ram Mandir development has shown a land price surge of 400-600% since 2019, which is an incredible jump.
- Varanasi: One of the oldest inhabited cities, Varanasi or Banaras, continues to attract pilgrims worldwide throughout the year. With the consistent polarising politicisation of religious campaigning, the increased footfall has spurred the development of hotels, guesthouses, and commercial establishments; there is a robust real estate market.
- Tirupati: This is one pilgrimage sites that gets over 30 million annual visitors and pilgrims, so the surrounding areas are seeing hotel and apartment booms in the Tirumala foothills and periphery.
- Jagannath Puri: The home to the iconic Rath Yatra in Puri, the Jagannath Temple attracts over 10 million visitors annually. This comes with robust infrastructure, like an ongoing corridor development, and beachfront hospitality projects, boost the real estate.
- Bodh Gaya: A key Buddhist site with over 1.5 million annual visitors, including a large international influx from Southeast Asia. Hospitality infrastructure is expanding in coordination with spiritual centres.
- Kamakhya Temple: This temple receives over 6 million visitors yearly, especially during the Ambubachi Mela. The hilltop location limits expansion, but peri-urban land values have surged.
- Meenakshi Temple: This temple attracts 8-10 million devotees yearly, and the surrounding area has become a hotbed for hotel chains and mixed-use property developments.
- Kashi Vishwanath: The development of the Kashi Vishwanath Corridor, which connects multiple sacred sites, has led to a 35-50% rise in rental yields and new hospitality investments; hence, the state has more than ₹3,500 crore in real estate projects catering to tourists.
- Vrindavan: Vrindavan has seen an increase in annual religious tourism, with an increased demand for residential and commercial properties; the developers, therefore, are focusing on areas near temples to capitalise on this trend.
- Golden Temple: With 35-40 million visitors annually, Sri Harmandir Sahib or Golden Temple rivals major Hindu temples, and the footfall is consistent and has always been so.
- Haji Ali Dargah: A recorded footfall of 8-10 million, Haji Ali Dargah is a tourism driver in Mumbai, hence, the property values in Worli and nearby areas have surged.
- Basilica of Bom Jesus: Being India’s top Christian pilgrimage site that has 1.5-2 million visitors annually, the influx of religious tourists supports the hotel-rental market of Goa in that region specifically.
Land acquisition hurdles in religious zones
Land acquisition near major pilgrimage centres is often a complicated and bureaucratic process, largely due to religious trusts and heritage ownership. In many cities, temple lands fall under the control of institutional bodies such as:
- Temple trusts (e.g., Shri Ram Janmbhoomi Teerth Kshetra Trust in Ayodhya.
- Wakf boards (for Islamic religious properties)
- Church dioceses and councils (in Christian-majority pilgrimage regions like Goa and Kerala)
These institutions operate with their own legal frameworks and governance rules, which lead to protracted negotiations, restrictions on commercial development, and limitations on leasehold conversions, like in Tirupati, much of the land around the temple is managed by the Tirumala Tirupati Devasthanams (TTD), making private development highly regulated and the Wakf Board often imposes conditions on land use. This is challenging. Developers must navigate not only legal but also socio-cultural sensitivities to execute projects in these areas, which slows real estate deployment and raises acquisition costs.
New age hospitality
Traditional hotels and dharamshalas are giving way to decentralised, tech-enabled models as the hospitality scene in holy towns undergoes a fundamental shift. This provides flexible, scalable, and reasonably priced alternatives, so startups like OYO Rooms, Airbnb, and even regional homestay platforms have upended the monopoly of traditional lodging.
The popularity of short-term rental models and serviced apartments in Vrindavan has made it possible for pilgrims to remain longer and more comfortably, particularly during yearly celebrations like Janmashtami. Airbnb listings for heritage homes and flats with river views have increased by more than 30% in Varanasi over the last three years.
Rishikesh has seen the emergence of yoga retreats doubling as homestays, combining spirituality with wellness tourism. These modern formats cater to digital nomads, long-term seekers, and solo female travellers—segments often overlooked by conventional religious lodging. This shift also allows local homeowners to participate in the tourism economy by monetising spare rooms or ancestral properties.
The result is a more decentralised and community-empowered model of hospitality, with lower entry barriers and higher occupancy resilience throughout the year.
Stakeholders benefitting from the boom
- Local communities
There is an influx of tourists that creates employment opportunities in the hospitality, retail, and transportation sectors.
- Real estate developers
The developers have benefited from the increased demand for properties, leading to higher sales and rental incomes: a boom in the economy.
- Government and municipalities
There is an enhanced infrastructure and increased tourism that contributes to higher tax revenues and overall economic development.
Challenges and considerations
As already discussed, the growth is promising; it is essential to address challenges such as:
- Sustainable development: There is an impending question of sustainability; the developers and governments need to keep in mind that infrastructure development does not harm the environment and the ecosystem around.
- Cultural preservation: It is a great responsibility to maintain the culture and historicity of these sites while the wave of modernisation sometimes takes over in the restoration projects, and sometimes in making the sites more attractive to the newer generations.
- The question of displacement: It is also important to gauge the question of displacement. Some people lose their homes and their roots, it is crucial to understand the ethics of construction.
- Affordable housing: The construction of housing solutions is also about balancing the development of high-end properties with the need for affordable housing for residents and visitors.
Housing.com POV
Religious tourism, as seen during events like the Maha Kumbh Mela of 2025, is now a booming space; it plays a pivotal role in driving real estate growth across India’s spiritual cities. There is a synergy between spiritual significance and economic opportunity, which presents a unique site for investors, developers, and local communities. With this trend, one lesson is not to underestimate this space and imperative to approach development with a focus on sustainability, cultural preservation, and inclusive growth.
FAQs
What effect does religious tourism have on property values?
The demand for hotels, homestays, and rental accommodations frequently rises as a result of religious tourism: as a result, land values naturally rise, and improved infrastructure is developed in and around pilgrimage locations.
In which religious cities has the value of real estate increased the most?
Real estate in cities like Ayodhya and Shirdi has grown remarkably; in certain cases, prices have increased by 30% to 600% in the past five years.
Which pilgrimage real estate investment options are the most promising?
There is increasing possibility for opening hotels, vacation rentals, retail stores, and even funding infrastructure projects close to well-known temples and other places of worship.
How does government policy affect religious tourism real estate?
Government initiatives such as improved infrastructure, tax benefits, and large-scale development plans often act as catalysts for rising property values and new investment opportunities in these areas.
Is religious tourism-driven real estate a good investment?
Generally, yes. With a steady stream of visitors, ongoing infrastructure upgrades, and strong rental demand, these areas tend to offer reliable and often high returns.
What’s the rental yield like in religious hubs?
Rental yields in these cities typically range from 4% to 10%. Places like Varanasi, Rishikesh, and Tirupati are known for offering some of the best returns in this segment.
Are there risks in investing in religious tourism real estate?
Like any investment, there are risks such as challenges in land acquisition, changes in regulations, and seasonal fluctuations in visitor numbers. It's wise to do thorough research before diving in.
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