India's expanding transport links spark new tourism-focused real estate opportunities
Improved highways and rail links are turning Indian destinations into multi-stop tourism circuits, prompting investors to target hotels, wellness centers, wildlife lodges and other niche assets.
CBRE South Asia’s latest tourism outlook, unveiled at the ASSOCHAM National Tourism Conclave in New Delhi, notes that new expressways and rail projects are reshaping travel patterns across India, creating linked corridors that combine historic, wildlife and pilgrimage sites. Hotel occupancy across the organized sector climbed to 64.1% in 2025, with average daily rates and RevPAR surpassing pre-COVID figures, driven by strong performance in both leisure spots like Goa and major metros such as Bengaluru.
The report points to a diversification of visitor demand into spiritual tourism, MICE, destination weddings, wellness, medical, cruise, rural and wildlife segments, each demanding specialized real-estate formats. Mid-scale hotels now represent nearly 60% of branded inventory, with states like Uttar Pradesh expanding mid-scale capacity. Opportunities range from pilgrim-focused budget lodging to high-yield wildlife lodges, while rural tourism leverages existing housing stock. Industry leaders stress that continued infrastructure upgrades, supportive policies and private-sector partnerships will be crucial to unlocking the sector’s growth potential.
Why it matters
Infrastructure upgrades are broadening India's tourism market, creating diverse real-estate investment prospects beyond traditional hotels.
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