A Year After Ram Temple Inauguration, Ayodhya's Real Estate Market Pauses
Ayodhya's real estate market has seen a significant cooling, with a 63% drop in residential demand in the October-December 2024 quarter compared to the previous year. The market is now stabilizing after the initial surge following the Ram Mandir inaugurat
AyodhyaReal EstateRam MandirProperty PricesHospitalityReal EstateJan 23, 2025
The initial frenzy that drove demand and prices up has now subsided, and the temple town is awaiting a larger-scale surge in property values.
Data from Magicbricks shows a 63% year-on-year decline in residential demand in the October-December 2024 quarter compared to the same period in the previous year.
The demand and prices had seen a significant rise just before the consecration ceremony of the Ram Mandir in January 2024.
However, this momentum began to wane after June 2024.
Real estate experts attribute this cooling to market saturation and a natural slowdown after a period of heightened activity.
On the hospitality front, no major hotel projects have started on the ground in the year following the temple’s inauguration.
Only a few budget hotels and home-stay options have come up.
Land prices have also mostly remained flat, a year after the consecration ceremony.
According to Magicbricks data, searches for residential property in Ayodhya had risen by 58.03% quarter-on-quarter in October-December 2023 and peaked in the January-March 2024 period, with a 186.54% growth sequentially.
However, this momentum has gradually subsided, with residential property searches dropping 63% on-year in the fourth quarter of calendar 2024.
Residential supply in Ayodhya, meanwhile, recorded a 39% annual growth, ensuring availability in the market even as demand levels normalize.
Prasun Kumar, Chief Marketing Officer at Magicbricks, noted that the demand for properties in Ayodhya, which experienced a surge at the beginning of 2024, has now stabilized significantly.
Frequently Asked Questions
What happened to Ayodhya's real estate market after the Ram Mandir inauguration?
Ayodhya's real estate market experienced a significant cooling after the Ram Mandir inauguration, with a 63% year-on-year decline in residential demand in the October-December 2024 quarter compared to the previous year.
Why did the demand for residential properties in Ayodhya drop?
The demand for residential properties in Ayodhya dropped due to market saturation and a natural cooling down after a period of heightened activity following the temple inauguration.
How have property prices in Ayodhya been affected?
Property prices in Ayodhya peaked in the April-June 2024 quarter but have since seen a slight adjustment, falling 3% to Rs 8,237 psf in July-September 2024 and further declining to Rs 8,212 in October-December 2024.
What is the current state of the hospitality sector in Ayodhya?
The hospitality sector in Ayodhya has seen slow growth, with only a few budget hotels and home-stay options opening after the Ram Mandir inauguration. No major hotel projects have started on the ground.
What is the future outlook for Ayodhya's real estate market?
The future outlook for Ayodhya's real estate market is cautiously optimistic. Experts predict that demand and sales will see good traction after the Ram Mandir project is fully completed in March 2025.
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