What has faith got to do with property prices? Religious passion has emerged as the latest factor pushing the growth of real estate in pilgrimage hotspots. This trend has led to excellent prospects for not only investors but also developers, who have lined up construction projects—from studio apartments and two-bedroom houses to independent villas.
For instance, Rishikesh and Haridwar, two very popular destinations for pilgrims, are witnessing large real estate developments with some 3,000 units under construction. Similarly, property prices in Guruvayur in Kerala, known for the Sri Krishna temple, are going through the roof, rising from Rs 700 a sq ft in 1990 to Rs 2,500 a sq ft now.
With land still available at low prices compared to bigger cities, supported by improved infrastructure, religious destinations are seeing a rising demand from buyers and investors looking to combine their spiritual needs with a longterm investment decision. The demand for quality housing in these locations is impacting prices noticeably.
“Rates in Vrindavan and Mathura have jumped by a whopping 200%. Land that was priced at Rs 3,000-3,500 a sq yard two years ago is now being quoted at Rs 6,000-7,000 a sq yard, and is likely to rise even further,” says Sudip Agarwal, director, Shri Group, which has a project near Govardhan Hill in Vrindavan.
Investment: Rs 30 lakh for a two-room cottage at Vrindavan |
In Andhra Pradesh, the Tirupati Urban Development Authority is planning a township spread across 145 acres at Surappakasam village near the holy town. The project is targeted at non-resident Indians and rich individuals who wish to spend their twilight years there.
Similarly, located less than 200 km from both Mumbai and Pune, en route to pilgrimage destinations of Shirdi, Shani Shingnapur and Trimbakeshwar, Nashik is also a prime example of a city whose real estate scenario is on the upswing owing to its strategic location.
With property rates that rank among the lowest in the state, Nashik now ranks as one of the fastest-growing cities in Maharashtra. “From a second home or investment perspective, buying property in Nashik makes a lot of sense,” says Sandeep Sadh of mumbaipropertyexchange.com. However, it is not that all religious locations are a top priority for developers and investors.
Investment: Rs 30 lakh for a 1,600 sq ft flat in Trichy |
“Confluence of climate and proximity to a big city makes some of these destinations more attractive. Some religious locations have a local catchment area and some have universal appeal,” says MS Agarwal of MSX Developers that has recently launched a project at Rishikesh. “For religious locations to develop into permanent residential locations, they will have to have some economic activity too or at least proximity to an economic centre,” he adds. A big draw for investors is rental returns. With a significant floating population, especially during festivals and fairs, the demand for temporary accommodation is high.
Satish Arora, chairman, Heritage JVM Group, says: “We did a survey in Delhi. Every day around 900-1,200 vehicles hit the Gurgaon toll bridge heading for Vrindavan. The number usually increases on weekends. The supply of quality accommodation is limited. So investing in a good property becomes a necessity for some.”
Where you buy your property and the reason for buying it will have an impact on the returns it can offer. For example, you will get maximum rental returns if the property is close to the biggest draw of the town or at least well connected to it. However, if you are planning to stay there, it should be away from the crowds. It is likely to get you a better resale value if the prospective buyer is looking to stay there.
However, experts also have a word of caution when it comes to buying property, especially land, in these locations. “Some of the religious locations also double as hill stations or restricted forest areas where more permissions are required. It is important to verify land deeds and get the proper documentation done before signing on the dotted line,” says Delhi-based real estate consultant Abdul Bari.
Quite clearly it’s a trend that is poised to get more pronounced. Hectic urban existence, compounded by unrealistic realty prices are making the lure of a serene and affordable life at such holy cities an irresistible proposition, not to mention a smart long-term investment decision.
| Haridwar, Rishikesh | Main draw: Hill station, and gateway to the char dham, the four holy Hindu pilgrimage destinations—Badrinath, Kedarnath, Gangotri and Yamunotri | Other growth drivers: Climate, connectivity to Delhi and hill stations like Mussoorie and Ranikhet | Nearest cities: Dehradun (52 km), Delhi (225 km) | Average property price: Rs 2,000 per sq ft for Haridwar, Rs 2,200 per sq ft for Rishikesh | Property options: Cottages, one and two-bedroom furnished apartments | Outlook: With the entry of big builders, both cities will see hectic construction activity. The state industrial development corporation is also developing SEZs on the outskirts. With over 250 industries being set up, there will be a huge demand for housing in the near future |
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| Vrindavan, Mathura | Main draw: Considered the birth place of Lord Krishna | Other growth drivers: Direct connectivity to Delhi and Agra. Mathura as a city is also seeing all round real estate development | Nearest cities: Mathura (15 km), Agra (58 km), Delhi (145 km) | Average property price: Rs 1,600 per sq ft for built-up property; Rs 5,000 per sq yard for land | Property options: Fully furnished cottages, land | Outlook: Some 15 developers have announced projects and about 2,500 units will become available in the next three years. With the six-laning of the national highway, connectivity will improve further. That will also boost demand for rented accommodation. |
| Puri | Main draw: Beach, Jagannath Temple (Rath Yatra); Puri is part of the state tourism’s golden triangle, along with Bhubaneshwar and Konark | Other growth drivers: Central funds for city infrastructure under JNNURM, tourism, proximity to the state capital | Nearest city: Bhubaneshwar (60 km) | Average property price: Rs 1,400 per sq ft | Property options: Apartments and land | Outlook: Tourism provides livelihood to 80% of the city’s population and with real estate catering to tourists or parttime settlers, rental and hotel accommodation will get a boost |
| Shirdi, Trimba-keshwar | Main draw: Shirdi is the shrine of Sai Baba; Trimbakeshwar is one of the 12 jyotirlingas and a venue for the Kumbh mela | Other growth drivers: Proximity to Nashik; Trimbak-eshwar is also a hill station | Nearest city: Nashik (75 km from Shirdi, 28 km from Trimbakeshwar) | Average property price: Rs 1,600/sq ft in Shirdi; Rs 1,500 per sq ft in Trimbakeshwar | Property options: Studio apartments, land | Outlook: Improved infrastructure and a ban on industries has made Shirdi a popular choice. Trimbakeshwar has climate and limited land going for it |
| Ujjain | Main draw: One of the 12 jyotirlingas, a Kumbh mela is held here every 12 years | Other growth drivers: Proximity to Indore and Dewas industrial area | Nearest city: Indore (56 km) | Average property price: Rs 1,800 per sq ft | Property options: Land, apartments | Outlook: Ujjain has slowly grown to be an important commercial centre in the region. Central funds for improving city infrastructure will open up new areas. The new master plan for the city proposes to decrease industrial activity in favour of residential developments |
| Tirupati | Main draw: Sri Venkateswara Temple at Tirumala | Other growth drivers: Tirupati serves as a regional centre for trade and commerce, a city development plan under JNNURM is being implemented | Nearest city: Chennai (130 km) | Average property price: Rs 1,700 per sq ft | Property options: Land, apartments, fully furnished cottages | Outlook: Tirupati functions as a service town to the Tirumala temple. With the four-laning of Tirupati-Chennai road and the proposed 25 new roads, connectivity to and within the city will improve |
| Guruvayur | Main draw: Sree Krishna or Guruvayurappan Temple | Other growth drivers: Investments by non-resident Indians | Nearest cities: Thrissur (29 km) and Kochi (75 km) | Average property price: Rs 1,900 per sq ft | Property options: Apartments and land | Outlook: Land prices around the temple have gone up in the last five years. While the cost is now about Rs 3 lakh in areas 200 metres around the temple, it is around Rs 7.5 lakh in areas within the 100-metre radius. This is likely to go up further as Guruvayur faces an acute shortage of rooms |
