Want To Buy Property In Ayodhya? Know More About Recent Rate Changes In The Real Estate Market

In the wake of the opening of the much-awaited Ram Mandir to the public on January 23, Ayodhya is witnessing a property market surge like never before. According to data released by Magicbricks, the online real estate portal, average property rates in the sacred city have skyrocketed by a staggering 179% in the past three months.

Magicbricks Research revealed to Moneycontrol that the average property prices in Ayodhya, which stood at Rs 3,174 per sq ft in October 2023, have soared to Rs 8,877 per sq ft in January 2024. Simultaneously, searches for residential properties in Ayodhya have experienced a remarkable 6.25-fold increase, signalling a growing interest from potential homebuyers and a surge in residential demand.

Amit Singh, a local real estate broker in Ayodhya, points out that despite no changes in circle rates in the last 5-6 years, market rates have surged significantly, creating an affordability gap for locals. Singh notes that the spike in property prices is primarily attributed to the inauguration of the Ram Mandir and the subsequent infrastructural developments in the city. Buyers from various districts and regions across the country are seizing the opportunity, purchasing properties at higher rates.

The surge in property rates is most pronounced in the last six months, with Ayodhya experiencing an influx of buyers attracted by the cultural and religious significance of the city. The surge has made pockets of the city unaffordable for the local population, emphasizing the transformative impact of the recent developments.

The majority of property investments in Ayodhya are concentrated in land, with key areas such as Faizabad Road, Deokali, Chaudah Kosi Parikrama, Ring Road, Nayaghat, and regions along the Lucknow-Gorakhpur highway witnessing heightened demand. These areas, strategically located within a 6-20-km radius of the Ram Mandir, have become focal points for investors seeking to capitalize on the burgeoning real estate market.

Government data from the Stamp and Registration Department of Ayodhya district reveals a substantial increase in property registrations between 2017 and 2022. In 2017, well before the Supreme Court verdict in 2019, Ayodhya saw 13,542 property registrations. Fast forward to 2022, and this number has surged to 29,889, marking a remarkable 120% increase.

ANAROCK Group, a real estate consultancy, highlights the transformation in land rates over the years. In 2019, land rates ranged from Rs 1,000 to 2,000 per sq ft; today, they stand at Rs 4,000 to 6,000 per sq ft. This surge in land rates further underscores the burgeoning interest and investment in Ayodhya's real estate market.

As reported by Moneycontrol on January 24, the property prices in proximity to the Ram Mandir area are experiencing fluctuations between Rs 10,000 and Rs 15,000 per sq ft. Areas situated within a 6-15 km radius of the temple site command rates ranging from Rs 4,000 to Rs 9,000 per sq ft.

The unfolding scenario in Ayodhya suggests a transformative phase for the city's real estate, driven by the cultural, religious, and infrastructural developments. While the soaring property rates may present challenges for the local population, they indicate a promising outlook for investors and developers eyeing Ayodhya's evolving real estate landscape.

*Inputs from Moneycontrol*