The Uttar Pradesh government has planned a 1,000-acre township in Ayodhya which will be a blend of contemporary and traditional architectural elements, Nitin Gokarn, the state’s additional chief secretary for housing and urban development, told ET.
The ‘New Ayodhya‘, for which the state government has already secured land, will be India’s first vastu-based township, he said.
With the Ram Mandir‘s inauguration set for January 22, developers are lining up to acquire land in the region for commercial and residential development.
“New Ayodhya City is going to be a river-centric city with a focus on sustainability,” said Gokarn. “It is going to be in one of the best cities in the county.”
The senior official said they recently auctioned a plot for a hotel, where the reserve price was Rs 88,000 per sqm, and the successful bid was for Rs 108,000 sqm.
“We are witnessing significant demand. We have initiated registrations for the state guest house, and subsequently, the commercial development plots will be put up for auction,” said Gokarn. “There is a shortage of clean properties, and the government is committed to assisting developers in acquiring such land.”
Land prices and property-related transactions in the city have shot up by 50% since the groundbreaking ceremony for a grand temple to Ram was performed in August 2020.
“Developers from all over the country are keen on acquiring land in Ayodhya as it will attract an influx of tourists. Government land is a safer bet for developers, and a planned township will attract huge investment,” said Amit Agarwal, founder and MD of 2A Company, a real estate firm.
Due to uncertainty over the land acquisition rules, it is the local investors who are driving sales in Ayodhya. The average number of deals per day in the region has increased to between 25 and 30 from 15-20 before the ground-breaking ceremony.
As per estimates from the Ram Temple Trust, the temple, once ready, could see 80,000-100,000 visitors daily.
Property prices in Ayodhya were estimated to have shot up by 25-30% in 2019 immediately after the top court awarded the disputed religious site in the city, where a 16th-century mosque was demolished, to the Hindus.
The administration has said it will offer all facilitation to investors under the present policies of subsidies and incentives.
