Ayodhya is undergoing transformation in 2024, primarily due to the construction of the Ram Mandir. Investors, developers, and homebuyers are flocking to the region to take advantage of the region’s newfound economic feasibility. The boom is visible in both the residential and commercial sectors.
Factors Driving Robust Growth in Ayodhya Real Estate Market
1. Religious Tourism Boost:
The construction of the Ram Mandir has transformed Ayodhya into a prominent pilgrimage destination, attracting millions of devotees annually. The resulting surge in religious tourism has led to increased demand for accommodation, creating opportunities in both hospitality and residential real estate sectors.
2. Infrastructure Development:
Recognizing Ayodhya’s potential, the government has heavily invested in infrastructure development. Improved connectivity, better roads, and enhanced public transport systems have further fueled the real estate boom in the region.
3. Civic Amenities Enhancement:
Ayodhya’s development focus has prompted the creation of essential civic amenities. Educational institutions, healthcare facilities, and recreational spaces are being developed to cater to the growing population, enhancing the city’s overall appeal.
4. Investor Interest and Ambitious Projects:
Investors, recognizing the potential for high returns, are pouring capital into Ayodhya’s real estate market. This influx of funds has facilitated the launch of ambitious projects, elevating the city’s overall infrastructure and aesthetics.
Infrastructure Boom Preceding The Ram Mandir Inauguration
1. Government Allocations and City Development:
The Uttar Pradesh government has committed over Rs 133 crore to Ayodhya’s infrastructure development in anticipation of the upcoming Ram Mandir inauguration. This substantial investment aims to strengthen the city’s foundational elements, including basic amenities, sanitation, roads, and streetlights. The recent opening of Ayodhya Airport, Uttar Pradesh’s fifth international airport, and the inauguration of the Ayodhya Railway Station further improve the city’s connectivity.
2. Resurgence by Ayodhya Development Authority:
The Ayodhya Development Authority is spearheading the city’s overall resurgence. Beyond infrastructure, their initiatives include artistic elements such as mural art and religious paintings on city walls, aligning with the historical and spiritual significance of Ayodhya.
3. Surge in Property Prices Amid Rapid Development:
Property prices in Ayodhya have risen at an unprecedented rate due to accelerated infrastructure development. Recent reports indicate a 4-10 times increase in prices over the past five years, with one biswa land (approximately 1350 sq ft) commanding a significant Rs 60 lakh.
Impact on Ayodhya’s Real Estate
The impending Ram Mandir inauguration is poised to act as a catalyst for a seismic shift in Ayodhya’s real estate sector. Developers are increasingly interested in developing integrated townships within the city, extending beyond residential areas to include privately owned hotels and residential societies. The Uttar Pradesh government has designated specific land parcels along the Lucknow-Gorakhpur highway to facilitate these real estate transactions.
Substantial government support for infrastructure development has resulted in impressive revenue collection from land registrations. Ayodhya has emerged as one of the highest revenue-generating cities, contributing significantly to ongoing development initiatives.
In preparation for a large influx of devotees, the district administration is improving infrastructure services. The Saryu Riverfront development program is a key focus, undergoing a makeover with modern amenities such as parks, restrooms, sitting areas, shopping zones, and recreation facilities. Simultaneously, substantial improvements in civic infrastructure, including roads, sewage networks, electricity, potable water supply, and rest houses, are underway.
Expert Views on Real Estate Boom in Ayodhya
Ravi Nirwal, Sales Director and Principal Partner, Square Yards
Ayodhya is undergoing an unprecedented transformation, driven by a substantial $6 billion investment in infrastructure, due to the inauguration of the Ram Mandir. This development has sparked a significant upswing in the real estate sector within the holy city, resulting in soaring property prices. Investors, both domestic and international, are actively pursuing valuable land parcels in close proximity to the temple site. The recent establishment of an airport has further intensified the real estate market in the surrounding areas. However, due to limited land availability and escalating demand, property prices in certain zones have reached almost unaffordable levels. As a well-connected city, Ayodhya holds substantial growth potential in the upcoming years, attracting the attention of prominent developers across the country. With various townships and private hotels slated to be constructed in Ayodhya, developers anticipate significant opportunities and substantial returns on investment.
Investors seeking to capitalize on this burgeoning market can explore both commercial and residential projects, as both sectors exhibit high potential for price appreciation in the foreseeable future. Return potential on residential investments look impressive. With rental prices already touching decent levels, there is an excellent chance of getting good yields if the property is located within a few kilometers of the temple premises. Further, if one is looking to invest in commercial properties, the return potential would be consistent and one can also sell off the property after asset value appreciates.
Property prices in Ayodhya have risen by 5-10 times ever since the construction of Ram Mandir broke ground. Based on the type of property and proximity from the temple, price of land and properties have escalated, with rates fluctuating between Rs 2000 per sqft to almost Rs 20000 per sqft within 5-10 kms of the temple site. With lakhs of visitors expected to visit the temple city post inauguration, it is expected that the prices can go up by 12-20 times in the next decade.
Chaudah Kosi Parikrama, Ring Road, Deokali, Nayaghat are some of the places that are best to invest in Ayodhya. These places are located within a 5-15-kilometre radius of the temple. Also, land parcels across the Gorakhpur Faizabad Highway are also experiencing heightened investment activities.
When considering investments in Ayodhya, it is imperative for investors to meticulously verify the authenticity of title and ownership documents associated with the properties under consideration. Additionally, a thorough examination of local zoning laws and regulations governing land use is essential to ascertain the permitted use of the targeted property. Comprehensive due diligence is required concerning property-related regulations, encompassing aspects such as land usage, construction norms, and any associated restrictions. Furthermore, investors should assess the availability and sufficiency of basic utilities, including water supply, electricity, and sewage systems. Lastly, evaluating the connectivity and proximity of the property to major roads, railways, bus routes, and airports is vital. This assessment not only enhances the intrinsic value of the property but also contributes to improved business prospects.
Vimal Nadar, Senior Director, Research, Colliers India
Major physical and economic infrastructure development initiatives are underway in and around Ayodhya. The recently operational international airport complements the several developments including road, hotels, hospitals to make Ayodhya a preferred religious tourism destination. These developments are already having a trickle-down effect in generating ample employment opportunities especially construction and transportation & logistics. However, the city will hold immense unleashed potential as it undergoes a major economic transformation as ample business avenues will open in the form of lodging & boarding, parks and ancillary services related to tourism. This metamorphosis of the city will thus have a significant bearing in unlocking value potential across the real estate value chain including housing, commercial and retail.
Mr. Aman Sarin, Director & Chief Executive Officer, Anant Raj Limited
Cities with religious significance consistently attract home buyers, both local residents and outsiders, for various purposes including personal use and investment. These cities are often chosen not only for their spiritual appeal but also as potential retirement destinations.
Ayodhya is set to experience great tourism due to the inauguration of the Shri Ram Lalla temple, Also other cities such as Haridwar, Varanasi, Tirupati, and Vrindavan are also experiencing a substantial demand in the real estate market.
Anant Raj, through its wholly-owned subsidiary, Jai Govinda Ghar Nirman Limited, has recently initiated an affordable housing project in Tirupati, Andhra Pradesh. Named Anant Raj Aashray-ll .The project is located in the Electronic Manufacturing Cluster 2 (EMC 2) in Tirupati developed by – The Andhra Pradesh Industrial Infrastructure Corporation (APIIC). The project spans a saleable area of approximately 10 lakh sq ft and has received all necessary approvals for construction from RERA, Andhra Pradesh and other authorities.
We will develop nearly 10 lakh sq ft of space, comprising around 1,900 apartments. Notably, the ticket size for these units is set at less than 20 lakhs. The project is slated for completion by 2027 and will feature a ground-plus-seven structure. This initiative aligns with our commitment to providing affordable housing solutions in regions with growing demand.
Demand of Townships and Private Hotels
Several townships and private hotels are expected to come up in the city, land for which has been sanctioned by the government. These land parcels are located around Chaudah Kosi Parikrama, Ring Road, and the Lucknow-Gorakhpur Highway.
The House of Abhinandan Lodha (HOABL), a Mumbai-based real estate developer plans to launch a 25-acre plotted development project in Ayodhya after the inauguration of the temple. The project is located almost 15 minutes from the upcoming temple.
Real estate body NAREDCO is also planning to organise a builders’ conference in Ayodhya to tap its commercial and residential opportunities as the holy city gears up to attract lakhs of tourists post inauguration of the Ram temple on January 22.
With Ayodhya turning into a tourist hub of global repute, investors from across the country are taking interest in the city’s real estate market. Ayodhya is already in the middle of an infrastructure resurgence through a $6-billion infrastructure facelift, with the government leaving no stone unturned to facilitate the economic boom in city by expanding the connectivity.
Images- ndtv.com, outlookindia.com, zeenewindia.com