Torbit Market Monitor/ Ayodhya

Torbit - April 29, 2024 - - 0 |
Premium Villa Plots in Ayodhya

A  Rising Star in Real Estate 

Ayodhya is becoming a hotbed for real estate, infrastructure, hospitality, and the commercial sector and the next two years may well see a huge spike in real estate prices.

According to a recent report by Axon Developers, following the grand event of the installation of the idol of Lord Rama in Ayodhya temple in January this year, there has been an unprecedented amount of spotlight on Ayodhya and nearby regions. The government has unveiled an ambitious Master Plan 2031, in which Rs 85,000 crores will be spent and  180 projects worth  Rs  30,500 crores are already underway.

A new airport has been built with an investment of Rs 1450 crores. Over Rs 450 crores have been spent to redesign the existing railway station and bus stand. Around Rs 7500 crores is spent on urban development projects.The city is home to one of the biggest solar power run street electrification programmes in the world, which is nearly 70% complete. UK based defence manufacturer Trafalgar has announced a huge investment of Rs 75000 crore to develop a defence manufacturing facility in Ayodhya. Work is going on war footing on a slew of other projects such as townships, entertainment-cum-retail zones, renewable energy plants, artificial islands, etc.

“Ayodhya is becoming a prime destination for real estate, infrastructure, hospitality, and commercial sectors. The temple town is stepping up fast and will soon become a key economic growth engine in the state of UP. Around 3300 hotel rooms are operational in Ayodhya apart from 600 homestays (having 2500 rooms). In future 76 new hotels are planned, which include 3 branded projects from IHCL (375+ rooms). Other iconic hospitality brands such as Radisson, ITC, Marriott, Lemon Tree are also foraying in the Ayodhya market.  The city is expected to receive  54 million tourists yearly, as per government estimates and is surely a lucrative opportunity for hospitality ventures.” says Ankit Kansal, MD, Axon Developers .

As per the Axon report, average property prices in central Ayodhya (3 km radius from the temple premise) is Rs 6050/ sq ft and can reach Rs12,651/ sq ft by 2029. This region features high on the radar of hospitality companies. In the wider Ayodhya (3-8 km radius from temple), property prices can reach Rs 7773/ sq ft by 2029. The current price in this region is Rs 3950/ sq ft.

The outer Ayodhya including the regions near the highway is also becoming a much  sought after micro market with many developers planning plotted developments, villas, and other branded projects. The present price of agricultural land in the outer region is to the tune to Rs 1.6- 2 crores per  acre but can soon soar.According to Kansal, in the next 18-24 months, we can see  a huge spike in real estate prices followed by a period of moderation.

As Ayodhya is gaining prominence, the growth won’t be limited to the real estate and hospitality sector. Ancillary businesses such as retail, F&B, QSRs, healthcare, education, etc. will thrive. Presently brands like CCD, Burger Singh, Dominoes, etc. have set-up their shop in Ayodhya. “More will follow to cater to the momentous shift in tourism numbers. Also, other segments such as manufacturing, start-ups, IT will also see a notable jump in investments”, adds Kansal.

As development is going on a rapid pace and tourists are pouring in large volumes, demand is also rising across essential products and commodities such as grocery, food produces, cement, building materials, etc.MOUs have been signed and announced across multiple sectors such as lifestyle, beverages, technology, paper and much more.   The positive impact of  mega investment and rapid development in Ayodhya will spill over to other neighbouring districts  such  as Sultanpur, Barabanki, Amethi and  Ambedkar Nagar.

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