Uttar Pradesh (UP), which tops the domestic tourist chart, is witnessing a substantial uptick in the demand for quality housing and commercial real estate in religious tourism hubs.

The prominent religious epicentres of Ayodhya, Varanasi, Prayagraj, Mathura, Mirzapur, Chitrakoot, etc are attracting both private and public-sector housing entities in droves following a sudden rise in faith tourism across the state.

According to the official data, investment in the formal real estate sector in the state’s top faith tourism destinations increased by 66 per cent from ~982 crore in the first half of calendar 2025 (H1CY25) to ~1,631 crore in the corresponding period of 2026.

The number of housing units in Ayodhya, Mathura, Varanasi, Prayagraj and Mirzapur realty projects also jumped from 2,481 in H1CY25 to 3,867 units in H1CY26.

“The rapid development of the state’s religious places is making a positive buzz. This encourages people to consider settling down in these towns, which feeds the growth of the formal real estate sector,” a senior UP official said.

With the rising demand for modern housing, the Uttar Pradesh government is proactively facilitating such projects, including greenfield townships.

Varanasi logged the biggest leap in real estate investment, from four projects worth ~205 crore in H1CY25 to six projects worth ~944 crore in H1CY26.

The state’s religious tourism saw a big leap after the redevelopment of the Kashi Vishwanath Dham in Varanasi and the consecration of the Lord Ram temple in Ayodhya.

The state’s inflow of domestic and international tourists more than doubled, from 640 million in 2024 to 1.56 billion in 2025.

In 2025, Prayagraj topped the chart with more than 691 million tourists. Ayodhya logged an inflow of 299 million, followed by Varanasi (173 million), Mathura (102 million), and Chitrakoot (36 million).