Real Estate in Ayodhya: Temple's Impact Fades, Prices Stabilize
After the excitement surrounding the inauguration of the Ram Mandir in January 2024, Ayodhya’s real estate market has seen a significant slowdown. Demand for residential properties dropped by 63% in the last quarter of 2024 compared to the previous year.
Initial Surge in Demand
Before the temple opening, Ayodhya’s real estate market experienced a huge spike in demand. Property searches rose by more than 180%, as investors and buyers rushed to purchase homes. However, by mid-2024, this strong demand began to ease. The market became saturated, and high property prices kept many buyers away.
Price Growth and Decline
Prices in Ayodhya, especially near the Ram Mandir, surged following the temple's consecration. However, this price growth was unsustainable. After a 29% rise in early 2024, property prices began to stabilize, with the average price falling slightly to Rs 8,212 per square foot by the end of 2024.
Slower Development in Hospitality
Ayodhya holds great potential for religious tourism, which could boost the hospitality sector. However, progress in this area has been slow. Big hotel chains like Taj and Leela have started new projects, but only a handful of small hotels and home-stays have opened in the past year.
What’s Next?
Experts predict that demand for budget hotels and guesthouses will rise as religious tourism grows. However, real estate activity is expected to remain subdued for the next few months. It’s anticipated that the market will pick up again once the Ram Mandir project is fully completed in March 2025.
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