• Thu. Feb 22nd, 2024

    Exploring the Rising Real Estate Market in Temple Towns

    ByEmma Wolukau-Wanambwa

    Jan 28, 2024
    Exploring the Rising Real Estate Market in Temple Towns

    In recent years, the real estate market in temple towns across India has experienced a significant upswing. These towns, known for their religious significance and cultural heritage, have become attractive investment destinations for both national and international buyers.

    One such example is Ayodhya, where the consecration ceremony of the Ram Mandir took place recently. Experts suggest that land prices in Ayodhya are now on par with established cities like Noida and Greater Noida. The average price of residential property in Ayodhya is close to ₹5000 per sq ft, while commercial property is around ₹8000 per sq ft. The demand for housing units and rental properties is also high, with 2BHK units being rented out for prices ranging from ₹18,000 to ₹20,000 per month.

    Limited supply and heavy demand mismatch are the primary factors driving the skyrocketing prices in Ayodhya. Real estate developers are capitalizing on this trend, with The House of Abhinandan Lodha (HOABL) launching 250 plots during the Ram Mandir consecration ceremony. Prices for these plots start at ₹1.72 crore for a 1,250 sq ft plot.

    Interestingly, the interest in Ayodhya’s real estate projects comes not only from domestic buyers but also from NRIs in the Middle East and the US. This diverse interest showcases the widespread appeal and global reach of Ayodhya’s development projects, which aim to foster infrastructure growth and democratize land in culturally and spiritually rich areas.

    The trend of rising real estate prices in temple towns is not unique to Ayodhya. Pilgrimage centers and temple towns like Rishikesh, Haridwar, Tirupati, Shirdi, Mathura, and Vrindavan have all experienced an upward real estate price cycle at some point. These towns attract not only religious tourists but also industrial and commercial demand, making them attractive investment destinations.

    The potential economic impact of improving infrastructure in temple towns is significant. A report by brokerage firm Jefferies suggests that Ayodhya’s $10 billion makeover, including a new airport, revamped railway station, and improved road connectivity, could attract 50 million tourists annually. This highlights the importance of religious tourism as a key segment of India’s tourism industry.

    Traditionally, buyers of residential spaces in temple towns fall into two categories: investors seeking rental and resale opportunities, and genuine buyers fulfilling long-cherished aspirations. However, residential units in these towns are often secondary considerations, with buyers prioritizing their primary homes in their cities of residence.

    As temple towns continue to witness growth and development, the real estate market in these areas will likely thrive. The combination of religious significance, cultural heritage, and improving infrastructure makes temple towns attractive destinations for both investors and genuine buyers.

    FAQ Section:
    1. What is the recent trend in the real estate market in temple towns across India?
    The real estate market in temple towns across India has experienced a significant upswing in recent years, attracting both national and international buyers.

    2. Can you give an example of a temple town where the real estate market has seen a rise?
    Ayodhya is one such example where the consecration ceremony of the Ram Mandir took place recently. The land prices in Ayodhya are now on par with established cities like Noida and Greater Noida.

    3. What are the prices of residential and commercial properties in Ayodhya?
    The average price of residential property in Ayodhya is close to ₹5000 per sq ft, while commercial property is around ₹8000 per sq ft.

    4. Why are prices skyrocketing in Ayodhya?
    Limited supply and heavy demand mismatch are the primary factors driving the skyrocketing prices in Ayodhya.

    5. Who is showing interest in Ayodhya’s real estate projects?
    Interest in Ayodhya’s real estate projects comes not only from domestic buyers but also from NRIs in the Middle East and the US, showcasing the widespread appeal and global reach of Ayodhya’s development projects.

    6. Are other temple towns experiencing similar trends?
    Yes, pilgrimage centers and temple towns like Rishikesh, Haridwar, Tirupati, Shirdi, Mathura, and Vrindavan have all experienced an upward real estate price cycle at some point.

    7. What is the potential economic impact of improving infrastructure in temple towns?
    Improved infrastructure in temple towns could attract a significant number of tourists. For example, a report suggests that Ayodhya’s $10 billion makeover could attract 50 million tourists annually.

    8. Who are the typical buyers of residential spaces in temple towns?
    Buyers of residential spaces in temple towns fall into two categories: investors seeking rental and resale opportunities, and genuine buyers fulfilling long-cherished aspirations.

    Definitions:
    – Consecration ceremony: A religious ceremony in which something is declared to be sacred or holy.
    – NRI: Non-Resident Indian, referring to Indian citizens living outside India.
    – Infrastructure: The basic physical and organizational structures needed for the operation of a society or enterprise, such as transportation, communication, power, and water supply.

    Suggested Related Links:
    Times of India: Ayodhya land costs now on a par with Noida, Greater Noida
    Moneycontrol: Jefferies evaluates economic impact of Ayodhya development projects
    Hindustan Times: Ayodhya likely to be a property hotspot