As Ayodhya gears up for Ram temple opening, realty prices skyrocket

Plots of land that people bought in Ayodhya before the 2019 Supreme Court verdict on the Ram temple are now worth crores, with property rates in the holy town skyrocketing as the temple nears completion. The consecration ceremony is on January 22.

With interested investors far exceeding the number of land parcels, property prices close to the temple have even gone up by as much as 10 times compared to a mere five years ago. According to media reports, land rates in the city are now on a par with those in Uttar Pradesh’s capital city Lucknow.

Eye-popping rates

Residential plots within a 5-10 km radius of the temple are now reportedly going for as high as Rs 18,000 per sq ft, while the minimum rate is around Rs 2,000 per sq ft. On the other hand, commercial plots rates range from Rs 20,000 to Rs 4,000 per sq ft.

One ‘biswa’ of land — which measures roughly 1,350 sq ft — may even cost over Rs 60 lakh. The same plot used to be a mere Rs 5 lakh till 2018. After the SC verdict towards the end of 2019, construction of the temple started on August 5, 2020. And prices started surging right after the verdict, reportedly soaring by around 25-30% immediately.

Infrastructure overhaul

It is not only about the temple though. As the temple came up, the Uttar Pradesh government majorly overhauled the infrastructure of the town too. The Ayodhya airport, which Prime Minister Narendra Modi inaugurated on December 30, is UP’s fifth international airport after Lucknow, Varanasi, Kushinagar, and Noida (under construction).

According to the UP government, more than 200 projects worth Rs 30,923 crore are underway in Ayodhya. Once the temple opens, the administration estimates a footfall of up to 2 lakhs on regular days and up to 5 lakhs on days of special significance. Keeping that in mind, roads have been redeveloped, widened, and beautified to ensure comfortable access to the Ram temple.

Some of these key roads are the 5.77-km Shri Ram Janmabhoomi Path (connecting the temple with Naya Ghat via Sugreev Qila), the 850-metre Bhakti Path (linking the main road to the temple via Hanuman Garhi), and a 12.9-km Ram Path (connecting Saadatganj with Ram Janmabhoomi).

On the outskirts

To tackle the anticipated rush on the Lucknow-Gorakhpur highway, a 65-km outer ring road has been planned too. The Ayodhya railway station is being expanded with three new platforms. A 1,200-acre Nav Ayodhya township is on the radar too, where state guest houses will be built. Land will be auctioned for hotels while residential plots will also be provided.

The government has also sanctioned land parcels around Chaudah Kosi Parikrama, Ring Road, and the Lucknow-Gorakhpur Highway for the townships and private hotels that are expected to come up in the city. A housing scheme spread across 80 acres along the Lucknow-Gorakhpur highway is also reportedly on the Ayodhya Development Authority’s radar.

Thanks to these initiatives, land prices have gone up substantially not only around the Ram temple but also on the outskirts of Ayodhya, says a study. For instance, land prices around Faizabad Road have reportedly gone up from Rs 400-700 per sq ft in 2019 to Rs 1,500-3,000 per sq ft, as recorded in October 2023.

Residential potential

Land prices may soar further after the temple opens, believe experts. Also, many developers are waiting for the inauguration and the subsequent footfall to decide on the nature of projects. Pilgrims and tourists are, of course, expected to throng the town, right after the temple opens its gates. Lakhs of visitors are expected even for the inauguration and after the event.

But besides investing in hotels and similar accommodation, many are investing in residential projects hoping that many senior citizens may buy second homes in the city, which has historical and cultural significance, and its population may go up significantly by 2031. Similar holy cities such as Haridwar, Rishikesh, Puri, Madurai, and Rameswaram are already home to such projects.

The House of Abhinandan Lodha reportedly plans to launch a 25-acre, plotted, residential project some 15 minutes from the new temple in January. Even big hotel chains like Taj and Radisson are reportedly planning to set up properties near the temple as well.

Everything hinges on footfall

However, everything will depend on the footfall and the demand after the inauguration, Shobhit Mohan Dass, president of the Confederation of Real Estate Developers’ Association of India (CREDAI), UP Chapter, told a media house, adding that most of these projects are likely to come up along the highway. Several developers are also waiting for infrastructure to develop adequately.

But if the land records are anything to go by, Ayodhya seems to be in for a major overhaul, not only in terms of infrastructure, but also in its overall character. Between April and November 2023, a whopping 30,000 sale deeds were reportedly registered in Ayodhya, and 80 per cent of them came from land transactions. And, according to media reports, the city reportedly topped UP in the collection from land registration for November.