"estacia" is a dwelling, a room, a place. Usually is a place for rest, study, work or relax. Can be small or huge. It's a place where I stay.
"donde tiene su estancia" means "where he has his home/dwelling/place.
'lugar en donde tiene su estancia el santon' means "the place where the saint-person has his ownplace/room or usually lives"
Other examples for "estancia"
"esta es mi estancia de trabajo" This is my work room
"este pais será mi estancia definitiva" This nation will be my permanent place
"mi estnaci será corta, vengo de turismo" I will be here for short time, I'm a tourist
"en aquel gran templo, el sacerdote sólo ocupa una pequeña estancia" In that big temple, the priest only has a little room.
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