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Ayodhya: Temple town turns into a property hotspot

[ecis2016.org] Residential properties within the radius of 10 km-15 km from the temple site, have seen a significant increase in prices

Ayodhya, along the banks of the Sarayu river, is fast emerging as a hub of economic growth and global tourism. The property landscape of the town has witnessed a sea change over the last three years. Envisaged as a spiritual center and global tourism hub, Ayodhya is also attracting big-ticket economic corridors and hence, investments from across the country and globally. This money is also finding its way into the real estate and infrastructure sectors.

Reasons for increasing real estate demand in Ayodhya

Ram Naresh, a native of Ayodhya, who has been operating out of the NCR suddenly finds his hometown more lucrative. “Till 2019, it was not feasible to make ends meet, while working in the property market of Ayodhya. Most of the deals were plotted developments and transactions were by and large directly between the buyer and the seller. The Ayodhya Mandir and the announcement of the international airport, have ignited the property market of the city. Now, a couple of large developers from Noida are launching multi-storeyed apartments in Ayodhya and I have more work here, as compared to Noida and Greater Noida,” says Naresh.

Ever since the Ram Janmabhoomi Temple received clearance from the Supreme Court of India, residential properties within the radius of 10 km-15 km from the temple site have seen an immense increase in cost.

The temple town of Ayodhya is expected to witness a huge influx of pilgrims, once the temple is constructed and this has prompted developers to vie for the first-mover advantage. A growing number of tourists would require ample space to accommodate them and hence, developers are showing keen interest, especially for land parcels for mixed-use development.

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Ayodhya real estate hotspots

The Uttar Pradesh government has also made 1,100 acres of land available, for constructing residential, commercial and retail development and private developers are aiming to acquire these and start their projects.

In terms of appreciation, the areas surrounding the temple site within a distance of 15 kms are performing extremely well, with property prices appreciating. There is huge demand for land parcels around the Ram Katha Park and the Bypass Road nearby that connects the town with major cities like Lucknow, Varanasi, Basti and Azamgarh.

Properties in Naya Ghat and Theri Bazar areas are also performing extremely well. Owing to the upcoming international airport and bus terminal and the government’s proposal to come up with cruise vessels, Ayodhya and areas around it seem set to become a tourist hub.

Analysts are not surprised with the above-average appreciation of Ayodhya properties in the last three years. They feel that the real boom is yet to come. Once the Ram Temple is close to completion, property prices here are expected to be highest, among pilgrim destinations in India. Ayodhya, along with Varanasi, is also expected to lead the property boom for at least a decade.

Property prices in Ayodhya

Ashish Narain Agarwal, founder and CEO, PropertyPistol.com, points out that since the Supreme Court verdict in November 2019, the price of properties in regions that are 10 km – 15 km from the Ram Janmabhoomi site, have gone up by 25%-30%. “The government’s plan to transform the temple town has attracted the attention of many investors, property purchasers, plot buyers, second home buyers and retirement homes seekers, especially NRIs, etc. Historically, any region with spiritual significance has always seen a healthy growth in real estate and the same stands true for Ayodhya,” says Agarwal.

JP Singh, a retired government employee, recounts that he bought a piece of land in Ayodhya for Rs 20 lakh in the year 2000 and built his own house. When he planned to shift to Mumbai where his son worked, no buyer was ready to offer more than Rs 1 crore for his house. “I used to think, if I sell the bigger house, I wouldn’t be able to buy a decent 2BHK in Mumbai with that money. Now, I am being offered double the price but my property dealer has advised me not to get tempted by an offer of Rs 2 crore and instead, wait for a year or so. I never thought that Ayodhya would be as costly as some of the metro cities of India,” says an elated Singh.

“As per rough estimates, nearly 80,000-1,00,000 tourists are expected to visit Ayodhya daily. There is limited supply of land parcels, as it is not a mega city with stretchable boundaries. Most of the government-acquired land parcels are for infrastructure purposes and not real estate. That is why, prices in some of the peripheral locations too, which were around Rs 500 per sq ft, have now shot up to Rs 2,000 per sq ft,” explains Ram Sevak, a local property agent.

It is not just the Indian developers and brokerage firms that are finding the city of Ayodhya an attractive proposition. Even Berkshire Hathway India, part of the global chain of Berkshire Hathaway Home Services, is eyeing the city as an engine of growth in its Indian portfolio.

(The writer is CEO, Track2Realty)

Source: https://ecis2016.org/.
Copyright belongs to: ecis2016.org

Debora Berti

Università degli Studi di Firenze, IT

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