Should you buy a property in a temple town?

India is a country with numerous spiritual destinations, where pilgrimage or ‘tirthayatra’ holds great significance. Over the recent years, the number of people visiting temple towns in India has increased. These cities attract people from all age groups and social strata. The constant influx of tourists to these destinations is a key reason for the high demand for rented apartments. Besides, the government is pushing for the fast development of temple towns. In the Union Budget 2025-26, the government has identified tourism as a sector for employment-led growth, focusing on places of spiritual and religious significance. The government has also announced that it will develop top 50 tourist destinations in partnership with states through a challenge mode.

The temple towns in India are expected to witness increased economic activities, driving infrastructure and real estate developments. The demand for properties has picked up in prominent cities such as Ayodhya and Varanasi. In this guide, we discuss the prospects of property investments in the popular temple towns of India.

Why are temple towns emerging as a preferred property destination?

#1. Trade and tourism driving economic activities

The popular temple towns of India, including Haridwar, Varanasi, Ayodhya and Shirdi, witnessed an influx of pilgrims throughout the year. The number of tourists increases during major festivals. Further, the economy of these cities is also driven by trade and commerce as local markets thrive in these locations. Spiritual tourism has a major impact on the local communities and the hospitality sector, encompassing hotels, guesthouses and serviced apartments. The growth of meditation retreats and wellness centres catering to travellers’ needs has also increased in recent years.

#2. Infrastructure development

The support in the form of favourable policy from the government and major infrastructure developments have been instrumental in the growth of temple towns in India. The development of roads, expressways, airports and metro projects, along with social infrastructural facilities like dining and shopping hubs, have contributed to the overall appeal of these towns. This is a key factor that draws tourists and investors, resulting in new real estate developments.

#3. Saturated real estate market in metro cities

Affordability is one of the top reasons people prefer buying properties in smaller towns. While the property prices in smaller tier 2 cities are rising steadily, they are still more affordable than the property costs in bustling cities such as Delhi, Mumbai, and Bangalore. The expensive and saturated real estate markets in big cities are a major reason people are looking to smaller towns to buy properties. Moreover, the cost of living is less, making it convenient for a family to meet their household needs without financial strain.

#4. Increased demand for holiday homes and retirement homes

There are several temple towns that have emerged as a favourable destination for second homes. Besides the religious and cultural significance, the scenic landscapes and natural beauty of these locations have attracted people, including retired individuals and NRIs, seeking leisure stays or second homes. The improvements in infrastructure and availability of essential amenities have enhanced the liveability factor of these towns.

#5. Potential for high rental income

The bustling economic activities generate new employment opportunities. Besides, the growth of infrastructure projects such as airports and metro railways increases the demand for commercial and residential properties. In recent years, property prices in cities like Ayodhya have significantly increased. The growing property prices and the steady influx of tourists are the top reasons why people prefer to invest in temple towns as they offer them avenues to earn steady rental income.

Why should you invest in a property in a temple town?

Lifestyle advantages

The popular temple towns of India are considered as fast developing cities owing to the thriving economy driven by the steady influx of tourists. However, these cities are comparatively less expensive and less polluted than some major cities in India. Buying a residential property in any of these temple cities will offer buyers a peaceful, culturally rich environment with easy access to the temples and other tourist spots.

Improved infrastructure

Infrastructure is rapidly developing in these cities. The government has been focusing on improving infrastructural facilities and amenities for the convenience of the tourists. Metro projects and airport expansion in these cities are being undertaken with the aim of boosting connectivity in the region.

Potential for price appreciation

There is scope for future price appreciation of properties owing to factors such as infrastructure improvements and the steady demand for properties. The potential high returns of properties and ample availability of investment options make the temple towns attractive to investors.

Steady rental income

There is a steady demand for temporary accommodation, including rented homes and serviced apartments, from tourists and pilgrims coming to these cities. This presents a good opportunity for a property owner to earn a steady rental income throughout the year.

Things to consider before investing in a temple town

Legal and regulatory considerations

Before investing in a property in a city, including popular temple cities, a prospective buyer should be aware of the local regulations in the state regarding government land transfers. It is important to check if additional approvals are required or if there are restrictions on who can purchase land in those areas. The property laws could be complex. Besides, one needs to be aware of the risk of disputed properties, which calls for proper due diligence before investing.

Seasonal market fluctuations

Although temple cities such as Ayodhya and Varanasi witness a steady influx of people seeking rented accommodations, these cities may see peak demand in certain months and a drop in the demand for the remaining time. Property investors should prepare for seasonal fluctuations and market volatility, which could impact their rental income.

Assessment of property usage

Before purchasing a property in a small town, a potential buyer must evaluate whether it is for investment purposes, for earning good returns or for end use. Location is a key consideration when investing in a property. Hence, if one is looking for a property in these cities for end use, it is essential to ensure there is well-developed social infrastructure in the area, such as schools, medical facilities, etc.

Understanding the resale potential

The resale value of properties in smaller towns may be limited when compared to those in top metro cities in India. This could be driven by factors such as the slower economic growth and relatively less developed infrastructure. Thus, a potential buyer must evaluate these factors, including the future development plans in the city, before investing in a property.

Top temple towns for property investment in India

#1. Ayodhya, Uttar Pradesh

The Ayodhya property market started witnessing significant growth after the Supreme Court paved the way for the construction of the temple in the city in 2019. The Ayodhya Ram Temple was opened to the public on January 23, 2024, and the Ayodhya Airport became operational on December 30, 2023. In recent years, the historic town has attracted a lot of investors, including large-scale developers and mega hotel chains, who are steering real estate activities.

Click to read about buying property in Ayodhya

#2. Varanasi, Uttar Pradesh

Varanasi is one of the oldest cities in the world and has been a popular spiritual destination. Today, Varanasi embraces modernity while retaining its spiritual importance and traditions. The city has an international airport. Besides, the Kashi Vishwanath Corridor and Smart City project have been key drivers for the boom in real estate demand in the city.

#3. Haridwar, Uttarakhand

Haridwar is another ancient temple town that has seen significant growth in recent years. Besides attracting tourists and developers catering to the growing property demand, the city has also attracted several businesses and start-ups, creating new employment opportunities. This has been a key growth driver for Haridwar’s booming real estate developments, besides the tourism and hospitality sector. The city offers diverse property options, including plotted developments.

#4. Prayagraj, Uttar Pradesh

Prayagraj, formerly known as Allahabad, holds great religious significance owing to the confluence of three holy rivers – Ganga, Yamuna and mythical river Saraswati. In addition, there are many tourist attractions and significant events like the Mahakumbh. There are also bustling industries that drive the economic growth of the city. The city enjoys strategic location advantages with excellent road, rail and air connectivity to other cities. Prayagraj’s real estate market caters to diverse homebuyers, from affordable housing to luxury apartments.

#5. Mathura, Uttar Pradesh

The property market in Mathura is witnessing an upward trend owing to the booming tourism sector and the development of infrastructure, including roads and the metro. Many property buyers are eyeing the city’s property market to earn good long-term returns on investment. There is a steady demand for rented properties, which attract a lot of investors.

#6. Vrindavan, Uttar Pradesh

Like Mathura, Vrindavan city has spiritual significance owing to its association with Lord Krishna. The city sees an influx of tourists around festivals like Janmashtami, creating an increase in accommodation. The demand for commercial properties is also high. Moreover, the city is well connected to major cities like Delhi and Agra. Infrastructure in Vrindavan is rapidly developing, promising a convenient lifestyle for home buyers. Vrindavan has several property options, including apartments and plots.

#7. Shirdi, Maharashtra

Shirdi is a prominent holy city in Maharashtra where the real estate market is seeing significant demand driven by spiritual tourism and infrastructure development. Besides hotels and serviced apartments, there is a high demand for rented properties. Shirdi’s easy accessibility to Mumbai and Pune and fast-developing infrastructure, including the expansion of the Shirdi airport, make it a favourable destination for property buyers and investors.

Housing.com News Viewpoint

The temple towns of India are emerging as the new preferred real estate destination for several homebuyers and investors. The key factors for this transformation include affordability, good connectivity, fast-developing infrastructure and a steady demand for rented homes. These cities offer a blend of modern conveniences amidst the spiritual ambience that draws devotees from all over the world.

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