Tier-2 cities with a strong religious tourism appeal, including Prayagraj, Varanasi, Puri, and Shirdi, are witnessing a significant surge in residential demand, according to a report by Magicbricks.

This growing interest is driven by a mix of self-use, investment, and rental opportunities, with these cities leveraging their cultural and spiritual significance to attract buyers.

Prayagraj, home to the sacred confluence of rivers, recorded a remarkable 28% year-on-year (YoY) increase in demand, while the historic city of Varanasi saw an 18% rise. Puri, known for its iconic Lord Jagannath Temple, posted an impressive 52% growth, and Shirdi, famous for the Sai Baba shrine, led the pack with a 67% surge in buyer interest.

The residential demand extends beyond permanent homes, with buyers exploring holiday homes, bed-and-breakfast (BnB) ventures, and long-term investments to capitalize on the growing influx of tourists.

Pricing trends in these cities reveal a dynamic market. While Varanasi experienced a 5.15% drop in prices due to increased supply, it remains attractive with an average rate of Rs 6,128 per square foot (psf). Prayagraj saw a dramatic 122% price spike earlier in 2024 due to high demand, though rates have now stabilized at Rs 6,645 psf.

Puri has seen a steady 30% appreciation over the last year, with prices reaching Rs 6,114 psf. Shirdi, with an average rate of Rs 4,028 psf, stands out as one of the most affordable yet lucrative markets for buyers.

The surge in demand is attributed to the rise in religious tourism, enhanced infrastructure, and the potential for rental income from short-term accommodations catering to pilgrims and tourists.

(Inputs from ANI)