Realty Boom in Ayodhya

The construction and consecration of the much-awaited Ram Mandir  has not only revived the glory of Ayodhya, the ancient religious destination of Hindus and the birthplace of Lord Rama, but has also ushered in an unprecedented real estate boom in the region.

Vinod Behl

The Rs 31000 crore makeover of Ayodhya has completely transformed this sleepy small place into a thriving modern  township. The Centre and the Uttar Pradesh government have together given a big infra and connectivity boost to Ayodhya, which has in turn spurred a real estate boom.

The 178 infra projects undertaken in Ayodhya include mega-developments like Rs 1463 crore   Maharishi Balmiki International Airport over 821 acres with an annual capacity to handle 10 lakh passengers and revamped Ayodhya Dham Railway Station with a future potential to handle 1 lakh passengers. Besides these , a grand bus station has been constructed. A big boost is provided to road connectivity to Ayodhya which is well connected to Lucknow Eway. . Gorakhpur Link Eway (NH27) will provide connectivity to Ayodhya from Gorakhpur, Azamgarh and other places. The 4-lane roads within the city and  roads connecting nearby districts are contributing significantly to religious tourism  and in the process sparking a realty boom. Says Vimal Nadar, Senior Director, Research, Colliers India, ” The infrastructure push will catapult Ayodhya as a preferred religious tourism destination and the metamorphosis of the city will have a great bearing in unlocking the value potential across the real estate value chain including housing, commercial and retail”.

This property boom in Ayodhya is clearly visible from the land deals rush.As per the data of Uttar Pradesh government’s revenue department, land deals have seen over 300 percent rise in the last six years- up from  5962 in FY18  to 20067 in FY 23. Brokers dealing in land say that today on an average more than two dozen land deals are happening daily. This surge in land deals for luxury villas, holiday/retirement homes, homestays , has sent land prices northwards. Says Anuj Puri, Chairman, Anarock Group, ” Property prices in Ayodhya shot up by nearly 25-30 percent in 2019 after SC verdict. Land prices had risen nearly Rs 400-700 per sq ft. in the outskirts (Faizabad Road) . Within the city limits, average prices stood between Rs 1000-2000 per sq ft during this time. However, the average prices in the outskirts of Ayodhya have jumped much higher. As for areas within the city limits, average prices have shot up to Rs 4000- 6000 per sq ft. Thus there has been a significant jump in average prices between 2019 and 2023″.

Ravi Nirwal, Sales Director & Principal Partner, Square Yards says that  due to limited land availability and escalating demand, property prices in certain zones have reached almost unaffordable levels. 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 sq ft to almost Rs 20000 per sq ft, within 5-10 km of the temple site”.

Nirwal lists areas like Chaudah Kosi, Parikrama, Ring Road, Deokali, Nayaghat(located within 5-15 km radius of the temple)  as the most sought after places to invest in Ayodhya. Also, land parcels across the Gorakhpur Faizabad Highway are experiencing heightened investment activity. . Investors seeking to capitalize on this burgeoning market can explore both commercial and residential projects which have high potential for appreciation, especially if property is located within a few km of the temple premises. Further, if one is looking to invest in commercial properties, the potential returns will be consistent and one can book profit by selling the property after capital/asset value appreciation.

In view of the high appreciation potential ,property in Ayodhya is attracting celebrities. Bollywood actor Amitabh Bachchan has bought a 10000 sq ft plot for around Rs 14.5 crore in the project, ‘ The Saryu ‘ on the banks of Saryu river, being developed by Mumbai-based branded land developer- House of Abhinandan Lodha.This property upsurge driven by end-users and investors will get a further push with Ayodhya Development Authority developing a new housing scheme spread over 80 acres.

As a well-connected city, Ayodhya holds a great potential in the coming years, attracting prominent developers  taking to townships and hotels development. Anuj Puri says that because of Ayodhya’s immense potential as a tourist destination, it will emerge as a hot bed of hospitality with hotels in all budget categories. According to hospitality experts, Ayodhya which currently has only two branded hotels offering about 150 rooms, will be needing 30000 rooms across all categories. Sensing this potential , Tata Group has announced plans to launch two hotels to become operational by 2027.  Oyo Group, according to its Founder & Group CEO, Ritesh Agarwal,   is gearing to launch 400 properties in Ayodhya, besides other religious destinations of Puri, Shirdi, Varanasi, Amritsar, Tirupati, Haridwar, Katra Vaishnodevi and Char Dham route by the end of 2024.. Adds Aman Sarin, Director & CEO, Anant Raj Limited, ” Because of the  tourism boom,  religious destinations including the red hot Ayodhya, will attract home buyers , both locals and outsiders who will be buying property for personal use and investment purposes Holiday homes and retirement homes will be in big demand”.

The proposed development of a new Greenfield Ayodhya Township will herald an altogether new phase in urban development. This Rs 2182 crore township over 1407 acres to be developed by Uttar Pradesh Housing & Development Board, will be India’s first Vastu-based river-centric city, a blend of traditional and contemporary architecture , focusing on sustainability. This New Ayodhya City has already taken off with the allotment of plots for religious and commercial purposes including hospitality.Going forward, as Ayodhya will be developed as a smart city, it will emerge as a global spiritual city on the lines of Mecca and Vatican, heralding a new chapter in India’s urban development and real estate landscape.

Ram Mandir – A Marketing Buzzword For Real Estate Developers

The  euphoria created by the Ram Mandir in Ayodhya has inspired real estate developers to cash in on this religious fervour. Inspired by the Ram Temple in Ayodhya, NCR-based Trehan Group has built a Ram Temple in its 250-acre township, ‘ Apna Ghar Shalimar’ in Alwar. Interestingly, the design of this temple spread over 2 acres , with beautiful landscaping    is inspired by the original Ram Mandir in Ayodhya.

The buzz around this temple has already paid rich dividends to the developer. The plotting done adjacent to the temple was completely sold out. Says Saransh Trehan, Director, Trehan Group, ” Such has been the appeal of our Ram Mandir that we could successfully market the non-prime plots in the township at high rates due to their proximity to the temple. While prime plots at the entry of the township with wide roads are fetching the rate of Rs 30000-35000 per sq yard, the non-prime plots towards the end of the township near the railway track are commanding a price of close to Rs 30000, double the price which they would have otherwise commanded”.