Ram Mandir: Property rates likely to rise by 12-20 times in Ayodhya, say experts

As the Ram Mandir consecration ceremony happened today, January 22, the real estate market in Ayodhya is likely to witness an unparalled surge in demand for properties, therefore, pushing the prices to another level.

Lakhs of worshippers will be visiting the newly constructed temple, thus property rates in Ayodhya are likely to foresee an upscale of 12-20 times, say experts, adding that the prices have already risen by 5-10 times ever since the construction of Ram Mandir broke ground.

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“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 ₹2000 per sqft to almost ₹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,” said 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.

Nirwal further added that the 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.

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“As a well-connected city, Ayodhya holds substantial growth potential in the upcoming years, attracting the attention of prominent developers across the country.,” Nirwal said.

Which zones in Ayodhya are attracting maximum investment?

The Chaudah Kosi Parikrama, Ring Road, Deokali, and Nayaghat are prime locations for investment in Ayodhya, situated within a 5-15 kilometer radius of the temple. Additionally, there is a surge in investment activities along the Gorakhpur Faizabad Highway, particularly in land parcels, according to Nirwal.

“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,” he added.

He further suggested the investors, who are planning to invest in the real estate market in Ayodhya, to assess the availability and sufficiency of basic utilities, including water supply, electricity, and sewage systems. Also evaluate 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.

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Other factors driving investment growth

Experts also believe that Ayodhya holds an immense growth potential in the upcoming years as various townships and hotels are already under construction or likely to be built in future.

“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,” Vimal Nadar, Senior Director, Research, Colliers India said.

Nadar further added, “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.”