Uttar Pradesh is witnessing growth in its real estate markets across major cities, including Ayodhya. The inauguration of the mega Ram Mandir on the 22nd of January, 2023, may contribute towards boosting Ayodhya’s real estate market further. Prices of property in and around Ayodhya have already gone up considerably over the last four or five years and should keep rising in the near future.
Based on reports, real estate demand has gone up considerably since the verdict of the Supreme Court back in the year 2019. There is not just higher demand from local residents, but also from external investors and businessmen. According to reports, prices of property went up by a whopping 25-30% in 2019 just after this verdict. Land prices shot up to almost Rs. 400-700 per sq. ft. on the city outskirts, while land prices within the city limits touched Rs. 1,000-2,000 per sq. ft in this period.
Within city limits, average property prices have jumped to around Rs. 4,000-6,000 per sq. ft. and this marks a huge increase in comparison to 2019. Ayodhya is not just becoming a hub for residential real estate, but also for tourism and hospitality. Demand should rise considerably for hotel properties in all segments, including 5-star hotels and budget accommodation. Experts feel that investors can bet on the transformation of the city and its outskirts, based on the $6 billion investment in infrastructure, leading to higher property rates. Both international and domestic investors are now looking at purchasing land parcels near the site of the temple.
The setting up of the airport has come as an additional boost for the property market in Ayodhya. With lower availability of land and high demand, prices in some areas have already touched unaffordable thresholds. Ayodhya is a well-connected destination which has immense potential for future growth and this has caught the attention of leading Indian developers who are eyeing private hotels and townships in the area. Several experts feel that real estate investment opportunities will be abundant in Ayodhya with its infrastructural and connectivity developments along with the resultant economic and business boom here. There will be more demand for vacation, senior/retirement, and second homes in the city along with homestays. Investors may gain from higher capital appreciation and rental returns alike as a result.
The Sales Director and Principal Partner at Square Yards, Ravi Nirwal, states that both commercial and residential realty investors will gain considerably from the current developmental wave in Ayodhya and assured appreciation in prices in the future. Rental prices have already touched highly favorable levels according to him. Areas located near the Ram Mandir are witnessing rental rates between Rs. 10-15,000 and this could go up even more with the infrastructural transformation of the city.
Ravi Nirwal also highlights how property prices have gone up by close to ten times since the verdict of the Supreme Court in 2019, hovering between Rs. 2,000 per sq. ft. to a whopping Rs. 20,000 per sq. ft. within a radius of 5-10 kilometres of the site of the temple. This boom, according to him, is now highly visible owing to the fast pace of land deals being closed for retirement homes, luxury hotels, homestays, and guest houses. He also states that religious tourism and the boom in infrastructure will propel land prices upwards by 12-20 times in the next decade, along with commercial activity.
Areas like Ring Road, Chaudah Kosi Parikrama, Nayaghat, and Deokali are among some of the prime investment destinations in Ayodhya, which are situated within 5-15 kilometres of the temple. There is also higher investment activity witnessed for land parcels which are situated along the Gorakhpur-Faizabad Highway.
Experts, however, advise caution for investors, stating that they should keep tracking market trends and price fluctuations in Ayodhya. Ravi Nirwal feels that investors should first verify the title and documents of ownership thoroughly, while for commercial investments, they should always examine the zoning regulations in order to avoid future hassles. He also adds that they should conduct due diligence extensively for any property-linked regulations including land usage considerations, property restrictions, and construction regulations. Other experts feel that land prices are currently inflated, which may limit future gains over the short-term. Hence, buyers should check whether there is any overvaluation-like scenario. They may consider choosing apartments and plotted developments by reputed developers instead, while waiting for calmer times when they can get better deals.
Investors should also look at aspects like utilities like sewage, electricity, and water, along with overall accessibility of any property in addition to evaluating the master plan of the city to gain more knowledge on Ayodhya’s potential future growth.
For a detailed report on this read the articles we were featured in:
The Economic Times: https://bit.ly/3vJ7QXw
The Financial Express: https://bit.ly/48EopSS
Hindustan Times: https://bit.ly/3vSARQi
The Property Times: https://bit.ly/3S7D169
ConstroFacilitator : https://bit.ly/3UbJmjU
Mint: https://bit.ly/3OarqCj
Published Date: Jan 20, 2024
