Ayodhya has blossomed into a hub of spirituality, making religious tourism the main source of revenue for the government here. The influx of visitors has surged, crossing 220 million by mid-2025, a significant rise from the 164.4 million in 2024. The growing interest from tourists has rapidly fueled demand for real estate in the temple town.
Since 2019, Ayodhya's real estate sector has witnessed a tremendous boom, with land prices near the temple area surging five to tenfold. Meanwhile, prices in the city's outer areas have increased four to eight times. This appreciation in real estate prices is driven by the inauguration of the Ram Temple and other development projects, establishing Ayodhya as a major religious tourism hub in Uttar Pradesh.
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Following the Ram Temple's inauguration, Ayodhya has become a prime spot for real estate investment. Notable growth has been observed in both residential and commercial sectors. As infrastructure development and tourism rise, property values have skyrocketed.
The residential market in Ayodhya, especially near the Ram Temple, has seen plot prices multiply several times. However, moderately priced plots are still available in areas like Faizabad Road and Raebareli Road. Real estate giants such as Omaxe and The House of Abhinandan Lodha have already launched residential projects here. On the commercial front, increasing tourism and developments like Ram Path and the international airport have spiked demand for commercial spaces for hotels, retail, and office use. Prime business locations have seen prices multiply significantly, with major hotel chains like Taj and Radisson planning to open near the Ram Temple. Given the expected rise in domestic and international tourists in the coming months, other hotel chains are also eyeing entry into Ayodhya's market.
The Uttar Pradesh government has initiated several infrastructure enhancements and urban development projects, boosting Ayodhya's appeal as a thriving residential and commercial center. The government is also promoting affordable housing in Ayodhya, an emerging real estate destination among tier-2 cities. Last December, the Ayodhya Development Authority launched the Vashishta Kunj scheme near the Lucknow-Ayodhya highway, offering 600 residential plots, with Phase 2 registration recently extended due to high demand. In addition, the Uttar Pradesh Housing Development Council (UPAVP) is developing a modern, eco-friendly greenfield township in Ayodhya. Mohit Batra, the regional director of Realistic Realtors, remarked, "Given the development trends in tier-2 cities, Ayodhya's real estate aligns perfectly with India's next growth wave." He emphasized that investors should view Ayodhya not just as a 'short-term' play around the temple, but as a long-term urban story where improved infrastructure, spiritual tourism, and plot land demand are creating a vibrant tier-2 micro-market.
Chairperson of Home and Soul, Sakshi Katyal stated, "Investors are no longer seeing Ayodhya as just a religious site, rather viewing it as an emerging story of tier-2 economic growth. Some reports indicate that with rapid development, Ayodhya now contributes approximately 1.5% to Uttar Pradesh's total GDP. This significant economic surge is resonating among NRIs and large institutional companies, who typically focus on ROI rather than sentiment."
