Ayodhya’s real estate market is witnessing an unprecedented boom, powered by the Ram Mandir inauguration, major infrastructure upgrades, and a massive surge in tourism. Property values across the temple town have soared, positioning Ayodhya as one of India’s fastest-growing Tier-2 investment destinations.
Prime Minister Narendra Modi is in Ayodhya today to hoist a sacred flag marking the completion of the Ram Mandir. The temple has transformed the city into a major spiritual hub, pushing religious tourism to record highs. Visitor numbers crossed 22 crore by mid-October 2025, up sharply from 16.44 crore in 2024, resulting in a strong spike in real estate demand.
Property Prices Surge Since 2019
Ayodhya’s real estate growth picked up momentum after the Supreme Court verdict in 2019 cleared the way for Ram Mandir construction.
- Near the temple zone: Property prices have increased 5–10x
- Outer city regions: Prices have grown 4–8x
Although valuations saw a temporary correction after the Ram Lalla Pran Pratistha ceremony in January 2024, the broader trend remains upward as long-term investors continue to enter the market.
Residential Real Estate: Plots Remain Hottest Asset Class
Residential plots near the Ram Mandir have appreciated sharply, with peripheral regions like Faizabad Road and Raebareli Road offering relatively affordable options. Developers such as Omaxe and The House of Abhinandan Lodha have already launched major residential projects to tap into soaring demand.
Commercial Realty Accelerates With Tourism Boom
Ayodhya’s commercial property market is expanding rapidly, especially with:
- The developing international airport
- Major connectivity projects like Ram Path
- Large hotel chains including Taj and Radisson establishing properties near the temple
Retail, hotels, and office spaces around the temple zone have seen significant price escalation as the city prepares for a sustained rise in domestic and international tourism.
Government Push for Planned Urban Growth
The Uttar Pradesh government is aggressively investing in urban development to support Ayodhya’s transformation:
1. Vashisht Kunj Scheme
- Launched by Ayodhya Development Authority
- 600 residential plots near the Lucknow–Ayodhya Highway
- Phase 1 sold out; Phase 2 extended due to overwhelming demand
2. UPAVP Green Field Township
A modern, eco-friendly township featuring plotted development and community amenities, designed to support Ayodhya’s expanding population and economic footprint.
Experts: Ayodhya Is Now a Long-Term Tier-2 Investment Story
Industry experts say Ayodhya’s boom is not a short-lived, sentiment-driven surge—but a structural Tier-2 growth story.
Mohit Batra, Regional Director, Realistic Realtors, said:
“Ayodhya is emerging as a Tier-2 micro-market driven by infrastructure upgrades, spiritual tourism, and rising demand for plotted land. Investors should view this as a long-term urban story rather than a short-term temple-led spike.”
Sakshee Katiyal, Chairperson, Home & Soul, added:
“Ayodhya now contributes nearly 1.5% to Uttar Pradesh’s GDP. With strong development momentum, NRIs and institutional investors are looking beyond emotion and focusing on real ROI.”