Ayodhya Ram Mandir inauguration hikes property prices 900%: How much can you profit if you invest now?

  • Kunvarji Realty
  • 20/01/2024

Ayodhya Ram Mandir inauguration hikes property prices 900%: How much can you profit if you invest now?

Source: The Economic Times

Is it the right time to invest in real estate in Ayodhya? With the Ram Mandir’s consecration ceremony around the corner, the Uttar Pradesh city is seeing a real estate boom. The prices of land in and around Ayodhya have skyrocketed — in some cases, five to 10 times the prices prevalent four to five years ago — according to several real estate players. And it is just the beginning. Once the Ram Mandir opens for visitors, there is likely to be a surge in the number of tourists to the holy city. Several townships and private hotels are expected to come up in the city in the next few years.

“Major physical and economic infrastructure development initiatives are underway in and around Ayodhya," says Vimal Nadar, Senior Director, Research, Colliers India. “The airport here has started functioning — and is set to be an international one. It complements several developments, including road, hotels and hospitals, to make Ayodhya a preferred religious tourism destination."

With the Ram Mandir, Ayodhya will see a major economic transformation. There will be ample business avenues in the form of lodging and 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," says Nadar.

Ram Mandir inauguration in Ayodhya: Real estate boom

"Investors seeking to capitalise 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," says Ravi Nirwal, Sales Director and Principal Partner, Square Yards.

There is a heightened interest among investors for land, plots and flats, says Pritam Chivukula, Co-Founder & Director of Tridhaatu Realty. This demand is coming from domestic and non-resident Indian investors, leading to a significant surge in property prices.

Ayodhya real estate: How much returns can you expect?

If you are planning to invest in real estate in Ayodhya now, how much return can you expect? Nirwal says, "Property prices in Ayodhya have risen by five to 10 times ever since the Ram Mandir broke ground. Based on the type of property and proximity to the temple, the price of land and properties have escalated, with rates fluctuating between Rs 2,000 per square foot to almost Rs 20,000 per square foot within 5-10 km of the temple site. With lakhs of visitors expected to visit the temple city after the inauguration, it is expected that the prices can go up by 12-20 times in the next decade."

Chivukula says the prices of properties close to the temple range between Rs 2,000 and Rs 18,000 per square foot. The director of Tridhaatu Realty Property estimates the prices to be on an upward trajectory for the next few years.

Ayodhya Ram Mandir inauguration: Which areas should you invest in Ayodhya now?

So where should you invest in Ayodhya now? Real estate players reiterate that places located within a radius of 5-15 km of the temple hold the most potential for new investors."Chaudah Kosi Parikrama, Ring Road, Deokali, Nayaghat are some of the places that are best to invest in Ayodhya," says Nirwal.

Also, land parcels across the Gorakhpur-Faizabad Highway are experiencing heightened investment activity. 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, he adds.

Further, if one is looking to invest in commercial properties, the return potential would be consistent. One can also sell off the property after the asset value appreciates. "Areas like Gomati Nagar and VIP Road, which are in close proximity to the temple, offer promising opportunities for commercial development. Investors can consider investing in commercial complexes, hotels, and shopping complexes to cater to the increasing demand,” says Niranjan Hiranandani, MD, Hiranandani Group.

Ram Mandir inauguration in Ayodhya: What to keep in mind while investing in Ayodhya

Investors must remain cautious while buying land or property in Ayodhya, especially amid the wave of development. Nirwal 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."

Those who are planning to invest in residential properties in Ayodhya must select renowned developers with proven track records. Samujjwal Ghosh, CEO of the House of Abhinandan Lodha, says, "Opt only for developers with a proven track record and unwavering reputation. There will always be miscreants seeking to take advantage of the prevailing wave of development in Ayodhya."

If you are investing in a property for commercial use, such as hotels or restaurants, it is essential to do a thorough examination of local zoning laws and regulations governing land use 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," Niral says.

Evaluating the connectivity and proximity of the property to major roads, railways, bus routes and airports is also vital. "This assessment not only enhances the intrinsic value of the property but also contributes to improved business prospects," he adds.

Gulam Zia, a Senior Executive Director in Knight Frank India, says the situation is very dynamic and investors must understand what the future holds. They need to check the demand for properties close to the Ram Mandir and the impact of government development plans to transform Ayodhya into a spiritual hub. They must be abreast of the local real estate market trends

The construction of the Ram Mandir in Ayodhya is likely to trigger a further real estate boom in the region, says Hiranandani. “In order to make a successful investment, it is important for investors to carefully weigh a number of crucial factors. It is important to analyse factors such as location, property prices, market demand, and future development plans when making an investment.”

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The information, details and specifications about the projects on this site are as provided by the developers and/or sellers to the best of our knowledge and it is advisable that the same be verified by the respective buyers & sellers. Kunvarji Realty Brokers is not a developer. Rates are indicative and subject to change without prior notice.
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