Ayodhya real estate: Experts foresee 12-20 times surge in real estate prices

Ayodhya real estate: As the Ram Mandir inauguration takes centre stage, Ayodhya sees an unparalleled real estate surge, pushing prices to nearly unaffordable levels. Within 5-10 kilometres of the temple site, property rates now range from Rs 2000 to Rs 20000 per sq ft. With lakhs of post-inauguration visitors anticipated, experts predict prices could skyrocket 12-20 times in the next decade.

“Land and property rates now fluctuate between Rs 2000 per sq ft to nearly Rs 20000 per sq ft within 5-10 kilometres 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,” Ravi Nirwal, Sales Director and Principal Partner, Square Yards.

Land squeeze lifts

Limited land availability and escalating demand for properties in proximity to the temple site have contributed to skyrocketing prices. Certain zones in Ayodhya have seen property prices increase by 5-10 times since the decision of ceremony of the Ram Mandir.

"A noteworthy $6 billion has been invested in Ayodhya's infrastructure, driving substantial growth and drawing the attention of both domestic and international investors," Nirwal added.

According to experts, Chaudah Kosi Parikrama, Ring Road, Deokali, Nayaghat are some of the places that are best to invest in Ayodhya. These places are located within 5-15 kilometres  radius of the temple. Also, land parcels across the Gorakhpur Faizabad Highway are also experiencing heightened investment activities.

Commercial-residential synergy

Ayodhya's well-connected status and growth potential have drawn the attention of developers across the country. With various townships and private hotels slated for construction, developers anticipate opportunities and substantial returns on investment in both commercial and residential projects.

"Major physical and economic infrastructure development initiatives are underway in and around Ayodhya. The recently operational international airport complements the various developments including roads, hotels, hospitals to make Ayodhya a preferred religious tourism destination," Vimal Nadar, Senior Director, Research, Colliers India. 

These developments are already having a trickle-down effect in generating ample employment opportunities, especially construction and transportation & logistics. However, the city will hold 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 transformation of the city will boost value across the real estate spectrum, including housing, commercial, and retail properties.

Experts advise investors to meticulously verify title and ownership documents, examine local zoning laws, and assess the availability of basic utilities before investing in Ayodhya. Connectivity and proximity to major roads, railways, and airports should also be evaluated to enhance the intrinsic value of the property and contribute to improved business prospects.

Religious real estate rise: Not just Ayodhya 

Ayodhya is not the only city experiencing a real estate boom due to religious significance. Other cities such as Haridwar, Varanasi, Tirupati, and Vrindavan are also witnessing substantial demand in the real estate market, making them attractive destinations for both personal use and investment.

"Ayodha is set to experience great tourism due to the inauguration of the Shri Ram Lalla temple. Other cities such as Haridwar, Varanasi, Tirupati, and Vrindavan are also witnessing a substantial demand in the real estate market," said Aman Sarin, Director & CEO, 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.