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, says Ravi Nirwal, Sales Director and Principal Partner, Square Yards
Investors, both domestic and international, are actively pursuing valuable land parcels near the temple site. The recent establishment of an airport has further intensified the real estate market in the surrounding areas, he says.
Due to limited land availability and escalating demand, however, property prices in certain zones have reached almost unaffordable levels.
As a well-connected city, says Nirwal, Ayodhya holds substantial growth potential in the upcoming years, attracting the attention of prominent developers across the country. With various townships and private hotels slated to be constructed in Ayodhya, developers anticipate significant opportunities and substantial returns on investment.
He opines that Investors seeking to capitalize on this burgeoning market can explore both commercial and residential projects, as both sectors exhibit high potential for price appreciation in the foreseeable future. Return potential on residential investments look impressive. 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.
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 Rs 2000 per sqft to almost Rs 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.
BEST OPTIONS: 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-kilometer radius of the temple. Also, land parcels across the Gorakhpur Faizabad Highway are also experiencing heightened investment activities, he says.
When considering investments in Ayodhya, it is imperative for investors to meticulously verify the authenticity of title and ownership documents associated with the properties under consideration. Additionally, a thorough examination of local zoning laws and regulations governing land use is essential to ascertain the permitted use of the targeted property. Comprehensive due diligence is required concerning property-related regulations, encompassing aspects such as land usage, construction norms, and any associated restrictions. Furthermore, investors should assess the availability and sufficiency of basic utilities, including water supply, electricity, and sewage systems. Lastly, evaluating 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, Nirwal explains.
Here are some more industry voices:
Vimal Nadar, Senior Director, Research | Colliers India: 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. 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.
Aman Sarin, Director & Chief Executive Officer, 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.
Ayodha is set to experience great tourism due to the inauguration of the Shri Ram Lalla temple, Also other cities such as Haridwar, Varanasi, Tirupati, and Vrindavan are also experiencing a substantial demand in the real estate market.
Anant Raj, through its wholly-owned subsidiary, Jai Govinda Ghar Nirman Limited, has recently initiated an affordable housing project in Tirupati, Andhra Pradesh. Named Anant Raj Aashray-ll .The project is located in the Electronic Manufacturing Cluster 2 (EMC 2) in Tirupati developed by – The Andhra Pradesh Industrial Infrastructure Corporation (APIIC). The project spans a saleable area of approximately 10 lakh sq ft and has received all necessary approvals for construction from RERA, Andhra Pradesh and other authorities.
We will develop nearly 10 lakh sq ft of space, comprising around 1,900 apartments. Notably, the ticket size for these units is set at less than 20 lakhs. The project is slated for completion by 2027 and will feature a ground-plus-seven structure. This initiative aligns with our commitment to providing affordable housing solutions in regions with growing demand.