Temple town realty's new calling: Premium housing takes centre stage

Pilgrim footfall and investor demand spur gated, mixed-use projects

India’s religious towns are no longer merely riding a residential real estate wave; they are shifting towards premium and branded housing. From gated plotted developments and integrated townships to luxury hotels and organised retail, premiumisation is emerging as the defining theme across spiritual destinations such as Ayodhya, Vrindavan, Varanasi, and Ujjain. 

Developers say the shift is structural. Large investments in connectivity, riverside redevelopment, and civic upgrades are reshaping liveability. Rising tourist inflows are creating demand that extends beyond short-stay pilgrims. 

According to Anarock Group’s Executive Director and Head of Research and Advisory Prashant Thakur, land prices in key pilgrimage centres have climbed. 

In Ayodhya, land rates that ranged between ₹400 and ₹700 per square (sq.) foot (ft) on the outskirts and ₹1,000-2,000 per sq. ft within city limits around 2019 rose to ₹2,000-6,000 per sq. ft in 2023. By end-2025, average prices range between ₹3,000 and ₹7,000 per sq. ft, depending on proximity to the temple. 

Varanasi reflects a similar trend, with land prices between ₹3,500 and ₹7,500 per sq. ft. In Ujjain, rates hover around ₹3,000-7,000 per sq. ft, while in Puri they range from ₹1,500 to ₹3,000 per sq. ft. Though the sharpest phase of escalation may be tapering, Thakur says prices are stabilising at a higher base, supported by sustained tourism and infrastructure spending. 

The buyer profile has also shifted. Once dominated by local end-users, these markets are drawing investors, high-networth individuals, non-resident Indians, and second-home buyers. With appreciation over the past three to five years, ticket

sizes have stretched compared to two years ago. 

“There is growing demand, with investors vying for a share of these cities,” Thakur said. “Religious tourism has grown sharply in recent years, with high-spending visitors seeking premium and luxury accommodation.” This, he added, is driving demand for branded hotels, upscale homestays, and organised retail. 

For the House of Abhinandan Lodha (HoABL), the premium pivot is most visible in Ayodhya. In 2024, actor Amitabh Bachchan bought a plot at HoABL’s The Sarayu project for an estimated ₹14.5 crore, signalling rising interest from marquee buyers. In 2025, he expanded his footprint with the purchase of another 25,000 sq. ft parcel adjacent to the project in the temple town, home to the Ram Mandir. 

Abhinandan Lodha, chairman, said the company began acquiring land for The Sarayu in 2020. Since then, prices in certain micro-markets have risen more than fivefold, with some pockets delivering over 40 per cent annualised appreciation. 

“Ayodhya is no longer just a seasonal pilgrimage centre. It is evolving into a year-round cultural and economic hub,” Lodha said, citing government investments estimated at over ₹85,000 crore in roads, rail, airport infrastructure, and civic redevelopment. Investors are now seeking planned, transparent developments with clear titles and amenities rather than standalone plots near religious sites, he added. Gated communities with clubhouses, open spaces, and curated infrastructure are gaining preference. 

HoABL has also partnered The Leela to develop a 100-key luxury hotel in Ayodhya, positioned as an all-vegetarian five-star property aligned with the city’s spiritual ethos. Cultural and spiritual destinations account for just under 20 per cent of HoABL’s portfolio, a share the company expects to raise to 25–30 per cent over the next three to five years. It has outlined plans to generate annual revenues of ₹10,000 crore by 2029–30 and expand across 48 locations nationwide. 

The firm is also eyeing Vrindavan for a 65-acre premium plotted development blending spiritual themes with large-format amenities and open spaces. 

Meanwhile, New Delhi-based Omaxe Group has expanded in Vrindavan. Managing Director Mohit Goel said the company delivered Omaxe Eternity and recently launched Omaxe Eternity 2, a 101-acre integrated township that saw around 750 units sold within days. Studio apartments are priced from about ₹50 lakh, plots from ₹84 lakh onwards. and villas from around ₹2.75 crore. 

Omaxe is also developing organised retail and mixed-use projects, including public-private partnership-led bus terminal redevelopments in Ayodhya and Prayagraj, integrating transit hubs with commercial and lifestyle components. 

Anarock expects destinations such as Tirupati, Shirdi, Dwarka. and Madurai to emerge as the next hotspots as infrastructure and tourism spending deepens.