Ram Mandir Inauguration Sparks Real Estate Frenzy in Ayodhya: Things to Consider Before Investing
Ayodhya, October 15, 2023
With the much-anticipated inauguration of the Ram Mandir in Ayodhya scheduled for January 22, 2024, the city is experiencing an unprecedented surge in interest from real estate investors, hoteliers, and even senior citizens looking to invest in this religiously significant destination.
Real estate brokers report that the limited availability of land parcels has led to soaring property prices, ranging from four to 10 times the rates observed just four to five years ago. The heightened demand is attracting investors from across the country, including non-resident Indians and senior citizens seeking second homes.
Anuj Puri, Chairman of the ANAROCK Group, notes, “Real estate demand in Ayodhya has risen significantly ever since the much-awaited verdict was announced by the Supreme Court back in 2019. There is a growing demand by not just locals but investors from outside the city, including businessmen.”
Legal Scrutiny Essential for Property Buyers
Legal experts emphasize that prospective buyers must meticulously verify the authenticity of title and ownership documents for properties in Ayodhya to avoid potential disputes or legal issues. The surge in property prices since the Supreme Court verdict in 2019 has made legal due diligence all the more crucial for informed investment decisions.
Changing Property Landscape and Prices
In 2019, post the Supreme Court verdict, land prices in Ayodhya surged by nearly 25-30%, reaching approximately ₹400-700 per sq. ft. in the outskirts (Faizabad Road) and ₹1,000-2,000 per sq. ft. within the city limits. Fast forward to October 2023, and average land prices have further skyrocketed to ₹1,500-3,000 per sq. ft. in the outskirts and ₹4,000-6,000 per sq. ft. within the city.
Key Considerations for Prospective Homebuyers
- Legal Authentication: Verify title and ownership documents to ensure there are no disputes or legal issues regarding the property’s title.
- Local Zoning Laws: Check local zoning laws and regulations governing land use to confirm the permitted use of the property.
- Infrastructure Facilities: Assess the state of infrastructure in the area, including water supply, electricity, sewage systems, and accessibility to major roads and public transportation hubs.
- Future Development Plans: Investigate the city’s master plan to understand potential infrastructure and development projects, providing insights into the property’s future growth and appreciation.
- Tourist Influx Impact: Consider the impact of the anticipated surge in religious tourism on commercial real estate development, such as hotels and resorts.
Upcoming Projects and Opportunities
Several townships and private hotels are expected to emerge in Ayodhya, with land parcels sanctioned by the government. The Ayodhya Development Authority plans to introduce an 80-acre plotted scheme, adding to the plethora of opportunities for investors.
The House of Abhinandan Lodha (HOABL), a Mumbai-based real estate developer, is set to launch a 25-acre plotted development project in Ayodhya after the temple’s inauguration, strategically located just 15 minutes from the upcoming temple.
NAREDCO Builders’ Conference and Opportunities Ahead
NAREDCO is planning a builders’ conference in Ayodhya to explore the city’s commercial and residential prospects. NAREDCO National President G Hari Babu envisions opportunities for hotels, resorts, and apartments as Ayodhya anticipates an influx of tourists following the Ram temple’s inauguration.
As Ayodhya transforms into a focal point of religious and cultural significance, the city’s real estate landscape offers potential opportunities and challenges, making informed decision-making crucial for prospective investors.