Ayodhya - The Booming Real Estate Market in 2024

Ayodhya - The Booming Real Estate Market in 2024

For Indians, this New Year celebration is like double ka meetha, a traditional Indian mithai. Ram Temple's inauguration on 22nd January 2024 is behind this delightfulness. In fact, the excitement to witness the much-awaited ceremony and the boom in Ayodhya real estate is the talk of the town.

Before digging deep into what's in store for investors in Ayodhya real estate, here's a glance at the performance of the Indian real estate market by the year-end.

Key Takeaway Insight on Indian Real Estate

• In Q2, FY 2024, Noida, among other tier-I cities, receive a positive response on new residential supply. The satellite city of the NCR region is among the top market performers as Godrej Tropical Isle steals the show this quarter. With this project, the city achieved a 95% sales-to-launch ratio.
• According to the current market trend, luxury caught the highest attention. Many tier-I cities, especially Southern India, recorded demand for premium residential properties. Following them are tier-ii cities, like Ahmedabad, that witnessed an increase in supply share from 14% to 17%.
• Quarter-to-quarter demand for commercial properties grew manifold. Mumbai and Chennai markets bounce back after a slight low in the office leasing activity. The absorption of retail space and REIT networks in Pune and Bangalore, respectively, is at a high.
• The credit flow by banks stands strong as the suggestion to include stamp duty and registration fee in the project value strengthens residential demand. The recent preventive measures by RBI to lower unsecured lending leads banks to bet on secure lending to bridge the growth gap.
• The developers with a pan India presence witness three times growth in presale figures. It is a positive sign as it allows constant cash inflow for construction completion. The outstanding performance of Godrej Properties and Prestige Group soared their share market value. They both garner 4% and 7% growth points respectively.

Ayodhya: The City of Believers

At the bank of Sarayu River, Ayodhya is the birthplace of Lord Ram. The city succumbed to several heartbreaking moments before the Hon'ble Supreme Court passed judgment on 09th Nov 2019. The decision offered a new lease of life to the city that struggled over decades to inscribe its identity.

Before the SC ruling, the city was moving steadily, hoping for light at the end of the tunnel. However, post-judgment, the city is witnessing a massive makeover in qualitative lifestyle and income growth. Ayodhya, the city of god and devotees, is witnesses a hawk-eye of real estate players and investors. Thus, the city, Ayodhya Dham, has ample real estate growth potential.

The Transforming Skylines of Ayodhya Real Estate

Ayodhya Dham is the new identity of Saketa, the ancient Ayodhya city. ADA (Ayodhya Development Authority) is responsible for the infrastructure development. To take development down the line, the State Government released an additional Rs. 130 crore fund for city development. Thus, several commercial properties are in pipeline here.

After the inauguration of Ram Temple, the city is likely to witness a footfall of 10 lakh passengers daily. Thus, the demand for lodges and hotels will increase rapidly here. Also, the residential premises will spectate advancement in Ayodhya. The increasing property registration in the city hints at the same.

With the city residents' expectations, the Mumbai-based realty giant House of Abhinandan Lodha (HoABL) also expects something big. Thus, the developer ventured into the Ayodhya real estate market. The plotted development by HOBAL is luring significant investors to this holy city. In Ayodhya, the land prices are sky-high, and foreign realty players are also trying to seek into the real estate market.

Ayodhya Real Estate and Infrastructural Growth

PM Narendra Modi inaugurated the Maharishi Valmiki International Airport in Ayodhya on 30th Dec 23'. The ceremony took place days before the much-awaited consecration ceremony scheduled for 22nd January 24'. The international connectivity will bridge the gap between Lord Ram and devotees.

Post this, PM Modi inaugurated the Ayodhya Dham railway station and green-flagged Amit Bharat and Vande Bharat trains. The city of Lord Ram got a bag full of development projects from the Government. Furthermore, multiple projects over Rs. 15,700 crore are sanctioned for the city. They will develop the city and nearby areas in the line of employment creation.

The Government initiated the development of tourist facilities from Naya Ghat to Laxman Ghat, where footfall is beyond imagination during Deeputsav, the festival of lights.

Following it is route beautification from Ram Ki Paidi to Ram Temple via Raj Ghat. The advancement and connectivity have sky-rocketed property prices in Ayodhya, and the momentum will continue in the future.

Ayodhya city skyline will witness a paradigm change in the horizon as several urban landscape projects are in the pipeline. Vashishtha Kunj Residential Scheme is an ambitious residential scheme of approximately Rs. 300 crore. The Greenfield integrated township worth Rs. 2,183 crore will turn around the residential concept of the city.

Thus, the real estate market will flourish in the holy city of Lord Ram.

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