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New Investment opportunities in India Spiritual Hubs
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🛕 The emergence of the “Sacred” real-estate sector.
In recent years, Ayodhya, Varanasi, Vrindavan, have presented themselves as a great investment opportunities, amidst what analysts are calling the emergence of India's next booming sector - The "Sacred" real-estate sector.
The Ram Janmabhoomi verdict, and the subsequent construction, and inauguration of the Ram Mandir, earlier this year have resulted in Ayodhya's real estate prices increase by roughly 400%. Previously, property rates in Ayodhya were between Rs. 400 and Rs. 700 per square feet, this has boomed to between Rs. 1500 and Rs. 3000 per square feet - with areas outside the city seeing even greater growth, with prices now between Rs. 4000 and Rs. 6000 per square feet.
This boom in Ayodhya's real estate market, due to its prominence as a "Spiritual hub" has promoted many investors to invest in similar "Spiritual cities"; among these, are cities like Varanasi and Vrindavan, which have already seen its prices boom. Varanasi, for example, has seen a similar boom just as the government built the Kashi Vishwanath corridor.
🧳 The rise of Spiritual Tourism
“Cities across India with religious significance are witnessing a surge in property development, driven by the increasing popularity of spiritual tourism and retirement homes. The infrastructure development and favorable business conditions have encouraged developers to explore opportunities in these spiritual hubs.”
The growing popularity of spiritualism tourism across India is considered by many to be the driving force behind this transformation. More and more Indians are traveling to these spiritual hubs, and many more wealthy home-buyers are looking to purchase a secondary, or a retirement, home in these cities - which is driving up prices. For example, recent data released by MakeMyTrip, a leading travel portal in India, found a staggering 585% increase in search for Ayodhya in recent years.
“The rapid expansion of spiritual tourism in India is driving the growth of the country's faith-based tourism market. Government initiatives to promote tourism and improve connectivity between pilgrimage sites are further boosting this growth. The rise of online retail platforms offering easy access to faith-based products and services is also a key factor,”
A report by Jefferies supports this belief; with their analysts believing footfalls to average 50 million in Ayodhya in the next couple years, with other pilgrimage centers following suit.
A report by CBRE, a real estate consultancy company, highlights how this shift in tourist preferences is encouraging local governments and business to join forces in delivering unique retail experiences. Take a look:
"This trend reflects a broader shift in tourist preferences, with travellers seeking transformative experiences beyond traditional rituals. The rise of urban spiritual tourism is catering to this desire, attracting visitors to cities known for their deep religious and spiritual significance."
The same report identifies Amritsar, Ajmer, Varanasi, Katra, Somnath, Shirdi, Puri, Tirupati, Mathura, Dwarka, Bodh Gaya, Guruvayur, and Madurai, as other cities set to follow in Ayodhya’s footsteps. The report also further explains,
".. local governments and businesses are joining forces to create unique retail experiences. This includes integrating local practices into the design and offerings of shops, restaurants, and hotels... Major hotel chains are adapting to the evolving preferences of spiritual tourists, offering clean, hygienic, and family-friendly accommodations that command premium pricing. Branded hotels are emerging as key players, offering a blend of comfort and traditional hospitality tailored for spiritual seekers."
Numerous, high-end hospitality brands are also making inroads into these cities. Taj, ITC, Lemon Tree, Novotel, JW Marriot, and Mayfair, are just some of the chain brands settings up experiential hotels and commercial spaces in these cities.
đź’¸ New Investment Opportunities
But what does this mean for you?
Ankit Kansal, managing director of 360 Realtors had this to say:
“India’s growing spiritual tourism will unlock new investment opportunities, giving rise to a niche but high-growth segment. As religious-spiritual tourism destinations such as Vrindavan, Ayodhya, Varanasi, Ujjain, etc., are thriving, there is an increased demand for concept-based real estate such as second homes, plotted developments, farmhouses, etc. Investments will rise in residential, commercial, and hospitality projects.”
He added that many tourists now do not prefer to stay in mainstay hotels; instead, they prefer homestays, rental villas, nature resorts, etc. This will pique interest in alternative hospitality business ventures. The profile of tourists is also evolving and now increasingly involves millennials, business travellers, foreigners, NRIs, and multi-generational families. This also means destinations alongside religious offerings also need to give a more holistic, wholesome stay to incoming tourists. This will further create new opportunities.
Numerous, high-profile individuals have already invested in spiritual cities, like Ayodhya. Take Amitabh Bachchan for example, who back in January, before the Ram Mandir Inauguration, bought a 10,000 square feet plot in a seven-star enclave in Ayodhya, constructed by The House of Abhinandan Lodha (HoABL), a reputed Mumbai-based developer. Although HoABL has not disclosed the price of the plot, industry experts estimate to be around Rs. 14.5 crore.
For any real-estate investors looking for great returns - we advice you to concentrate your search around this spiritual hubs.
đź“– Quote of the Day
"Find out where the people are going and buy the land before they get there."