'2 Crore Per Acre': How Ayodhya is Emerging as Prime Investment Destination With Key Focus on Commercial, Real Estate & Hospitality Sectors

Since the landmark verdict by the Supreme Court in 2019, Ayodhya and its surrounding regions have garnered unprecedented attention. This spotlight was further intensified by the monumental Pran Prathista mega event held on 22nd January. Riding on this momentum, the government unveiled an ambitious Master Plan 2031, with a staggering investment of Rs 85,000 crores. Currently, approximately 180 projects amounting to around Rs 30,500 crores are already underway. Notably, a new airport, constructed with an investment of Rs 1450 crores, has bolstered connectivity. Additionally, significant sums have been allocated for revamping the railway station, bus stand, and urban development projects, totaling around Rs 7500 crores.

Ayodhya is witnessing substantial infrastructural development, including one of the world's largest solar-powered street electrification programs, which is nearly 70 per cent complete. Various other projects such as townships, entertainment-cum-retail zones, renewable energy plants, and artificial islands are progressing rapidly.

The real estate landscape in Ayodhya is poised for exponential growth. In a recent market assessment analysis conducted by leading real estate company Axon Developers, Ayodhya emerges as a prime investment destination with a focus on various sectors such as real estate, hospitality, and commercial ventures.

In central Ayodhya, within a 3 km radius from the temple premises, the average property price stands at Rs 6050 per square foot and is projected to reach Rs 12,651 per square foot by 2029. This area is particularly attractive to hospitality companies. Moving outward to the 3-8 km radius from the temple, property prices are expected to soar to Rs 7773 per square foot by 2029, compared to the current rate of Rs 3950 per square foot, as indicated by the Axon report.

"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 Uttar Pradesh. 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," stated Ankit Kansal, MD, Axon Developers.

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

Even the outer regions of Ayodhya, including areas near the highway, are witnessing a surge in interest from developers. Plotted developments, villas, and branded projects are on the agenda, with agricultural land prices currently ranging from Rs 1.6 to 2 crores per acre, poised for further escalation, said the report.

"As Ayodhya is gaining prominence, the growth won’t be limited to 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" noted 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.

Ayodhya's transformation into a flourishing investment hub is evident from the strategic initiatives undertaken by both the government and private sectors. With robust infrastructural development, burgeoning real estate prospects, and a conducive investment climate, Ayodhya presents promising opportunities across various sectors, propelling it towards a prosperous future.

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