Their three main areas of concentration are land plotting (sale of plots), residential township development, and business, including hospitality and commercial.
Real estate moguls from Mumbai are scurrying towards a sacred plot of land as soon as Ram Lala arrives in Ayodhya!
According to trustworthy sources, seven major players (from Mumbai), including Oberoi Realty, Godrej Properties, Runwal Group, and the Hiranandani Group, have acquired sizable land parcels in the temple city during the last three months.
Property values increase by 179%
Following Prime Minister Narendra Modi’s Pran Pratishthan ceremony on January 22, property prices are up 179%, per an online real estate portal.
B Teams of Mumbai-based developers are currently in Ayodhya looking for additional land banks and setting up business development operations, according to a reliable source who spoke with FPJ. Their three main areas of concentration are land plotting (sale of plots), residential township development, and business, including hospitality and commercial.
Only 590 hotel rooms are available in Ayodhya’s 17 hotels, according to Dr.Adv. Harshul Savla, managing partner of M Realty. There are plans to build 73 hotels, 40 currently under construction. OYO plans to add 1000 rooms, and Marriott International and IHCL have already inked hotel deals. “It is no surprise that developers are sending out teams on a land grab expedition, given the enormous potential for hospitality!”
The average property prices in Ayodhya, where the Ram Mandir opened to the public on January 23, have increased by 179% in the previous three months. According to the real estate portal, Ayodhya’s average prices grew from Rs 3,174 per square foot in October 2023 to Rs 8,877 per square foot in January 2024.
Land rates, which in 2019 varied from Rs 1,000 to 2,000 per sqft, are currently at Rs 4,000 to 6,000 per sqft, according to real estate consulting firm ANAROCK Group.
The cost of real estate close to Ram Mandir ranges from Rs 10,000 to Rs 15,000 per square foot. Before, it cost between Rs. 2000 and Rs. 3000 per square foot. Now, properties within 6 to 15 km of the temple site fetch between Rs 4,000 and Rs 9,000 per square foot.
The demand for commercial land is increasing, local real estate experts told FPJ. The Abhinandan Lodha group is developing Sarayu, a seven-star mixed-use luxury enclave, on the exact spot where a team from Maximum City recently approached Sudhakar Srivastava, a local hotelier and property dealer from Ayodhya, for a land parcel. It is said that Bollywood star Amitabh Bachchan paid approximately Rs 14.5 crore for a 10,000-square-foot plot here.
For locals, property prices have become unaffordable.
Srivastava continued by saying he had shown some sites to a team of developers from Mumbai. “They have taken an interest in a 640-square-foot land parcel near the Abhinandan Lodha group site. One Biwa is equal to 1362 square feet. Through my communication with the local farmers, we were able to unite them on a single platform and gather 640 Biswas on an ongoing basis. However, Srivastava told FPJ, “The developer is not too happy about the price point and wants 1000 Biswas.”
He said that the cost was approximately Rs 10 lacs per biwa. He stated that a Biswas was once available for RS 2 to 3 lacs. Even though land parcels are readily available, a source told FPJ that farmers and local agents are purposefully raising the price and projecting scarcity because they are sensing demand from large players. “They are projecting a situation of supply and demand.”
According to Srivastava, the entry of foreign real estate players into Ayodhya, including Mumbai, NCR, Gujarat, and other districts, has driven up property prices to the point where residents can no longer afford them in certain parts of the city. According to Anuj Puri, Chairman of ANAROCK Group, “There is a growing demand not just from locals but from investors outside Ayodhya as well.”
Property registrations in Ayodhya are said to have increased following the 2019 Supreme Court ruling and the Mandir’s opening. Data from the Ayodhya district’s Stamp and Registration Department shows that between 2017 and 2022, property registrations increased by 120%.
Following the Supreme Court decision and the Mandir’s recent opening, there has reportedly been a spike in Ayodhya property registrations. The Stamp and Registration Department in Ayodhya district has released data indicating a 120% increase in property registrations between 2017 and 2022.