As Ayodhya is featuring high on the agenda of big private and public sector agencies, property prices are swelling in and around the city peripheries.
Table is turning on Ayodhya after the inauguration of the Ram temple. The small temple town is now at the center of a never-ending saga of infrastructure growth and multi-phased economic development. As a part of the master plan 2031, the GOI has committed a huge budget of Rs 83,000 crore for the development of infrastructure. Already projects worth Rs 30,500 crore are either completed or are at various stages of construction.
A new airport has been unveiled in Ayodhya following an investment of Rs 1450 crore. The airport currently can manage an annual traffic of around ~ 1 million. Once fully completed, the Valmiki International Airport, as it is called, will handle 6 million passengers. More than Rs 450 crore have been spent to give the railway station and the bus stand a facelift. Around Rs 10,000 crore will be spent in and around Ayodhya to create a network of highways and modern roadways.
Likewise, generous investments are being made towards electricity, solar power, and the electrification of roads, townships, and housing complexes. The development agencies will also invest in integrated tourism projects including bazaars, theme parks, jetties, manmade islands, etc.
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A new era of opportunity opening for the hospitality sector
As per the government estimates, around 54 million visitors will come to Ayodhya in 2024. Even if ~ 70% of the initial estimates are realized in the ground, it will bring windfalls for the hospitality sector in Ayodhya.
The positive ramifications of growth will also be felt in other nearby districts such as Basti, Sultanpur, Ambedkar Nagar, Amethi etc. making Ayodhya the champion of regional upliftment. As millions of tourists will pour in, Ayodhya will depend on nearby districts for food products, commodities, and manpower.
The hospitality & tourism industry in Ayodhya is on wings with around 3300 rooms in the city currently. There is an additional pipeline of 76 new hotels. New projects are developed across premium, mid-scale, and budget hotel ranges. IHCL, the parent company of the coveted Taj hotels are coming up with 3 new independent projects with a collective of 400 rooms in total. Other major hospitality brands such as Radisson Blue, Hyatt, Lemon Tree, Wyndham, etc. are working large scale projects in the region.
In the budget segment as well, we are witnessing aggressive investments from the hospitality players. OYO is working on around ~ 50 hotel projects with around 1000 rooms. The development authorities are also incentivizing the development of alternate hospitality in the form of homestays, rental villas, guest houses, etc.
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As land demand surges, property prices swell in Ayodhya
Property prices are rising in Ayodhya backed by new projects and land deals. Both private and government run agencies are coming up with big ticket size projects in the temple town.
The state is developing Vasisthkunj, a 70-acre integrated housing project across NH 27, around 8 kms from the city centre with a collective investment of Rs 2200 crore. The state-run housing board, Awas Vikas has also announced an 1800-acre residential project which will also incorporate religious, commercial, and hospitality ventures.
Amongst private players, The House of Abhinandan Lodha has announced a large-scale project Sarayu, spread across a sprawling 51 acres of land.
As Ayodhya is featuring high on the agenda of big private and public sector agencies, property prices are swelling in and around the city peripheries. As per research by Axon Developers, average prices in the key central area (3 kms radius of the temple) can cross Rs 12,600/ sq. ft by 2029.
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Key Research Findings on Ayodhya
Recently we have compiled an assessment report on the future potential of Ayodhya, primarily focusing more on key sectors such as real estate, hospitality, retail, etc. Some of the key findings of the assessment reports are
1. The current price in central Ayodhya (3km radius from the temple) is Rs 6050/ sq. ft. and can reach up to Rs 12,651/ sq. ft by 2029. The region is seeing heightened interest from hotel operators.
2. In the wider Ayodhya (3-8 kms radius from temple) the current property prices are Inr 3950/ sq. ft. It can reach up to Inr 7773/ sq. ft by 2029. This region is primed for residential, wellness, and retail development.
3. In the outer Ayodhya (rural peripheries and towards the highway) the current price is Inr 460/ sq ft and can amount to Inr 720/ sq. ft. by 2029. This region is a potential ground for plotted development, second homes, farm stays, etc.
4. A total of Rs 77,000 crore of investments has been announced to develop manufacturing industries around Ayodhya. It includes sectors such as defence, lifestyle & interiors, technology, papers, beverages, etc.
5. There is a pipeline of 76 new mainstay hospitality projects in Ayodhya. Out of this, 5 -star and other related premium rooms will comprise ~750 rooms.
