Ayodhya, A Fast Emerging Real Estate Hotspot: Axon Developers’ Report

April 8, 2024: Real estate company Axon Developers has released a market assessment analysis on Ayodhya, focusing on key potential levers of economy such as real estate, hospitality, commercial investments, etc.

 After the verdict by Supreme Court in 2019, there has been an unprecedented amount of spotlight on Ayodhya and nearby regions, which was further backed by the grand turn out during the Pran Prathista mega event on January 22, 2024. The government has unveiled an ambitious Master Plan 2031, in which Rs 85,000 crores will be spent. Already work is undergoing on 180 projects, worth Rs 30,500 crores.

A new airport has been built following an investment of Rs 1450 crores. Over Rs 450 crores have been spent to redesign the existing railway station and bus stand. Around Rs 7500 crores is spent on urban development projects.

The city is home to one of the biggest solar power run street electrification program in the world, which is nearly 70% complete.  Work is going on war footing on a slew of other projects such as townships, entertainment-cum-retail zones, renewable energy plants, artificial islands, etc.

“Ayodhya is becoming a hotbed for real estate, infrastructure, hospitality, and commercial sectors. The temple town is stepping up fast and will soon become a key economic growth engine in the state of UP. Around ~ 3300 hotel rooms are operational in Ayodhya apart from ~ 600 homestays (~ 2500 rooms). In future 76 new hotels are planned, which includes 3 branded projects from IHCL (375+ rooms). Other iconic hospitality brands such as Radisson, ITC, Marriott, Lemon Tree are also foraying in the Ayodhya market.  The city is expected to receive ~ 54 million tourists yearly, as per government estimates and is surely a lucrative opportunity for hospitality ventures,” said Ankit Kansal, MD, Axon Developers.

As per the report, average property prices in central Ayodhya (~ 3 km radius from the temple premise) is Rs 6050/sq ft and can reach 12,651/sq ft by 2029. This region features high on the radar of hospitality companies. In the wider Ayodhya (3-8 km radius from temple), property prices can reach Inr 7773/ sq ft by 2029. The current price in this region is Inr 3950/ sq ft, as per the Axon report.

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The outer Ayodhya including the regions near the highway is also becoming a sought after market with many developers planning plotted developments, villas, and other branded projects. The present price of agricultural land in the outer region is to the tune to Inr 1.6- 2 crores/ acre but can soon jump fast.

“Next 18-24 months can see a huge spike in real estate prices followed by a period of moderation,” said Kansal.

“As Ayodhya is gaining prominence, the growth won’t be limited to the real estate and hospitality sector. Ancillary business such as retail, F&B, QSRs, healthcare, education, etc. will thrive. Presently brands like CCD, Burger Singh, Dominoes, etc. have set-up their presence in Ayodhya. More will follow to cater to the momentous shift in tourism numbers. Other segments such as manufacturing, start-ups, IT will also see a notable jump in investments” added Ankit Kansal.

As development is going on a rampant pace and tourists are pouring in large volumes, demand is also rising across essential products and commodities such as grocery, food produces, cement, building materials, etc. The positive impact will spill over to other neighboring districts as well such as Sultanpur, Barabanki, Amethi, Ambedkar Nagar, etc.

UK based defense manufacturer Trafalgar has announced a huge investments of INR 75,000 crores to develop defense equipment manufacturing in Ayodhya. Likewise, MOUs have been signed announced across multiple sectors such as lifestyle, beverages, education, technology, paper, and much more. With materializing such big ticket investments, thousands of new jobs will be created. This will further propel the economy in the positive direction.

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