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Average property rates in Ayodhya, where the Ram Mandir was opened to the general public on January 23, have gone up by 179 percent in the last three months, according to Magicbricks, an online real estate portal.
“According to Magicbricks Research, average prices in Ayodhya have increased from Rs 3,174 per sq ft in October 2023 to Rs 8,877 per sq ft in January 2024,” the portal said in a statement issued to Moneycontrol.
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Alongside, searches for residential properties in Ayodhya have risen 6.25 times, Magicbricks claimed.
During the same three-month period, the platform has seen a whopping 6.25x jump in searches for residential properties in Ayodhya, indicating growing interest from prospective home buyers and increasing residential demand in the city,” the statement added.
Amit Singh, a local real estate broker from Ayodhya, said there has been no change in circle rates in the city in the last 5-6 years but the market rate is very high, thereby creating a gap between the prices. “In some pockets of the city, the prices are now unaffordable, especially for locals,” he added.
“The spike in property prices has been the highest in the last six months because of the opening of the Ram Mandir and infrastructural development in the city. To cash in on the opportunity, many buyers from other districts and regions across the country have purchased properties here at higher rates, which has changed the real estate market dynamic,” Singh added.
Where are investments being made?
Majority of the investments in property are being done in land and apart from properties in the city, several areas such as Faizabad Road, Deokali, Chaudah Kosi Parikrama, Ring Road, Nayaghat, and areas along the Lucknow-Gorakhpur highway are seeing strong demand, local brokers said.
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These areas are located within a 6-20-km radius of the Ram Mandir and hence have drawn investor interest, they added.
Also read: Ayodhya Ram Mandir: Amitabh Bachchan has invested in land, should you too?
Property registration data
According to data from the Stamp and Registration Department of Ayodhya district, property registrations rose 120 percent between 2017 and 2022.
In 2017, well before the Supreme Court verdict in 2019, as many as 13,542 properties were registered in Ayodhya. This went up to 29,889 in 2022, according to the government data.
According to ANAROCK Group, a real estate consultancy, land rates, which ranged from Rs 1,000 to 2,000 per sqft in 2019, are now at Rs 4,000 to 6,000 per sqft.
Also read: House of Abhinandan Lodha plans to launch a 25-acre project in Ayodhya by January 2024
Moneycontrol had reported on January 24 about property prices close to the Ram Mandir area fluctuating between Rs 10,000 and Rs 15,000 per sq ft. Those located within 6-15 km of the temple site command a rate of Rs 4,000-Rs 9,000 per sq ft.
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And as the city transformed, its real estate sector also underwent a sea change. Ved Prakash Singh, an 80-year-old who has lived all his life in Ayodhya, recalls how this was a neglected town of narrow streets and open sewers. In two years, all that has changed. His son, Mahesh Singh, is a mason. Now, he’s never without work. He’s not only building houses and shops but also adding an extra floor to his house to accommodate pilgrims. Who knows, some of them may even be international visitors, he says.
The city is currently experiencing a real estate boom, spurred by the upcoming ‘pran pratishtha’ ceremony of the Ram temple. This boom is evidenced by a surge in land deals for luxury hotels, villas, retirement homes, guest houses, and homestays. Since the 2019 Supreme Court verdict favouring the temple’s construction, property prices have increased by 25-30%. An investment of over Rs 85,000 crore is expected in Ayodhya in the next decade.
Anuj Puri, chairman of Anarock group, a real estate consultancy, isn’t surprised by this boom. He attributes it to religious tourism, excellent infrastructure, connectivity, and strong political will.
However, this growth has led to a scarcity of properties. Local property dealer Akhilesh Singh reports a dramatic rise in land rates, with commercial property prices reaching as high as Rs 6,000-Rs 7,000 per sq ft. This scarcity is echoed by another dealer, Pervez Ahmed, who notes the government’s acquisition of most vacant plots and sky-high prices due to high demand and limited supply.
This development has had its downsides. About 4,000 residential and commercial structures were demolished to widen a road, causing dissatisfaction among those who lost property.
The Ayodhya Development Authority plans to develop a new housing scheme spread across 80 acres. High-profile projects, like that of Mumbai-based developer Abhinandan Lodha, are in the pipeline, including a 25-acre project with luxury amenities. The city is preparing to accommodate a surge in tourism. Officials estimate around 45 lakh tourists monthly, far exceeding Ayodhya’s population. The hospitality sector is responding; major players are planning hotels to meet the demand. For instance, the Taj brand is set to open upscale hotels, and the Abhinandan Lodha group is collaborating with Leela Palaces, Hotels & Resorts for a luxury hotel near the temple.
Local families like Shivani Shukla’s are adapting to the tourist influx by starting travel companies and offering homestay accommodation, showcasing Ayodhya’s evolution from a quaint town to a booming religious tourism hub.