21 Jan 2024

Ayodhya Real Estate Booms After Ram Temple Construction, Property Prices Surge Tenfold But What Some Locals Are Regretting?

In the wake of the commencement of the Ram temple construction in Ayodhya, significant governmental initiatives have been implemented, leading to a rapid transformation of the city's infrastructure. 

According to Sushil Jaiswal, a local businessman and Vyapar Adhikar Manch convener, the surge in development projects, ranging from roads and airports to hospitals and sewer lines, has drawn attention to Ayodhya, resulting in an unexpected tenfold increase in property prices over the past four years.

Rajeev Kumar Gupta, a local businessman and property dealer, said there has been an unprecedented rise in property values. He said that prime commercial properties have experienced remarkable appreciation. For instance, a 5,000 square feet commercial property near the Ram Temple, valued at Rs 2.25 crore in 2019, has seen its price escalate to Rs 5 crore today.

Amit Singh, a real estate consultant in Ayodhya, attributes the surge in property prices to the declaration of the area around the Ram temple as a religious zone. Previously available at Rs 2,000 per square foot, the same space is now inaccessible at anything less than Rs 15,000 per square foot.

Big companies are aggressively acquiring properties

The influx of over 100 major companies, particularly in the hotel and real estate sectors, has further intensified the demand for property in Ayodhya. As a result, local property dealers like Rajeev Gupta tell that these companies are aggressively acquiring properties, setting new records daily and depleting the available land supply.

Hundreds of locals affected

However, the construction activities associated with the Ram temple have not been without challenges. Recent road widening efforts by the state government have caused damage to properties, affecting hundreds of locals, who struggled to find alternative locations for their businesses.

Nandu Kumar Gupta, president of the Ayodhya Udyog Vyapar Mandal trade union, asserts that the road expansion projects have exacted a significant toll on small shopkeepers and businesses. He emphasizes that the planning should have prioritized the well-being of the local population. Instead, they have faced harassment, threats, and received inadequate compensation.

The surge in property prices extends beyond the immediate vicinity of the Ram temple, impacting Ayodhya and its surrounding districts. Farmers within a 15-20 kilometer radius have witnessed a shift in valuation metrics, with property prices skyrocketing from Rs 300 per square foot a decade ago to a minimum of Rs 5,000 per square foot today.

Amit Singh emphasizes the transformation of Ayodhya's real estate sector from an unorganized state to one aligned with the master plan of the Ayodhya Development Authority. The master plan separates areas for religious, residential, commercial, and industrial purposes, providing a structured framework for future development.

Some locals regret selling their properties before the surge

Despite the overall positive economic impact, there are instances of regret among some locals who sold their properties before the surge. 

Ajay Tripathi, for instance, sold a commercial property for Rs 65 lakh in 2021, only to witness its value exceeding Rs 1.5 crore within two years. 

Ajay says, “We did not think that after the construction of Ram temple, there would be such a rise in property prices. We had sold our land at the market rate at that time, but within 2 years its price has increased to more than Rs 1.5 crore. Today we regret that we should have waited a little longer.”

This story is not just about one person in Ayodhya. Real estate consultant Amit Singh says, “Six months before the Supreme Court decision, one of our acquaintances sold his plot and bought a house in Lucknow. At that time he got the price of that plot around Rs 80 lakh."

“Today its value is more than Rs 3 crore. He called me and said that I had made a big mistake and now he is not in a position to buy that property.”

Even the people doing property work had not anticipated that there would be such a jump in property prices after the decision.

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