Temple Towns in India Poised for Rapid Real Estate Growth
Varanasi, Ayodhya, Puri, and other temple towns in India are expected to witness fast-paced real estate development driven by government policy support and infrastructure growth.
Real EstateTemple TownsSpiritual TourismIndiaInfrastructure DevelopmentGovernment Policy SupportReal EstateJun 18, 2024
The report, Equitable Growth and Emerging Real Estate Hotspots, identifies these cities as emerging hubs for real estate growth, driven by government policy support and infrastructure development. The cities have been selected based on parameters such as sanctioned allocations under various government programs, annual tourist footfalls in primary pilgrimage sites, upcoming plans of real estate developers, and land price appreciation.
The growth of these temple towns is expected to be driven by spiritual tourism, with improved infrastructure and connectivity set to attract more tourists and investors. The report notes that smaller towns are emerging as dynamic contributors to India's economy, driven by improved infrastructure, affordable real estate, skilled talent, and government initiatives.
By 2050, India is expected to have nearly 100 cities with populations exceeding one million, in addition to its eight mega-cities. Key factors such as infrastructure development, digitization, tourism, and changes in the office landscape will drive the next wave of urban growth across these locations.
The real estate sector is expected to grow significantly, with estimates suggesting that it will reach $1 trillion by 2030 and potentially $5 trillion, a 14-16% share in GDP by 2050. Alternate asset classes such as data centers, senior living, and second homes are also poised for significant activity in these emerging real estate hotspots.
The rise of hybrid working is also expected to drive growth in these towns, with companies establishing satellite offices in smaller towns. Colliers India has identified Coimbatore, Indore, and Kochi as locations with high potential as satellite office markets.
The report notes that the growth of these temple towns will create a win-win scenario for companies and employees alike, with office rental arbitrage, typically 20-30% lower, and relatively affordable housing markets in these locales.
Colliers India is a leading real estate consultancy firm that provides expert advice to clients in the real estate sector.
Information The Indian government has been actively promoting spiritual tourism in the country, with several initiatives aimed at developing infrastructure and improving connectivity in temple towns. The growth of these towns is expected to have a significant impact on the Indian economy, with estimates suggesting that it will drive the next wave of urban growth across the country.
Frequently Asked Questions
Which temple towns are expected to witness fast-paced real estate growth?
Varanasi, Ayodhya, Puri, Dwarka, Shirdi, Tirupati, and Amritsar are among the 17 high-potential cities identified by Colliers India.
What are the key drivers of growth in these temple towns?
The growth of these temple towns is driven by spiritual tourism, government policy support, and infrastructure development.
What is the expected impact of the growth of these temple towns on the Indian economy?
The growth of these temple towns is expected to drive the next wave of urban growth across the country, with estimates suggesting that it will reach $1 trillion by 2030 and potentially $5 trillion, a 14-16% share in GDP by 2050.
What types of real estate development are expected to see significant activity in these temple towns?
Residential, commercial, retail, hospitality, and industrial segments are expected to see significant activity in these temple towns, along with alternate asset classes such as data centers, senior living, and second homes.
How will the rise of hybrid working impact the growth of these temple towns?
The rise of hybrid working is expected to drive growth in these towns, with companies establishing satellite offices in smaller towns and taking advantage of office rental arbitrage and relatively affordable housing markets.
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