Ayodhya’s real estate market has moved into a new orbit over the past few years, transforming a once-quiet temple town into one of India’s most-watched tier-2 property destinations. As the Ram Mandir nears full completion and visitor numbers surge, the city is experiencing a long-term shift driven by tourism, infrastructure spending and renewed investor interest.
Prime Minister Narendra Modi’s visit to Ayodhya to hoist a sacred flag marking the completion of the Ram Mandir underscores how central the temple has become to the city’s identity and economy. The numbers tell their own story. Visitor footfall crossed 22 crore by mid-October 2025, sharply higher than the 16.44 crore recorded in 2024. This extraordinary rise in pilgrims and tourists has created steady demand for residential and commercial space, pushing Ayodhya into a new phase of expansion.
The market’s current trajectory is rooted in the Supreme Court’s 2019 verdict, which cleared the way for the temple’s construction. Prices began climbing soon after. Property values near the temple zone have multiplied five to ten times since 2019, while areas on the outskirts have appreciated four to eight times. Even with a mild correction after the Pran Pratistha ceremony in January 2024, the overall trend remains strong.
Developers and consultants say the shift is structural, not speculative. Ayodhya is now positioned as one of the country’s most important religious tourism hubs, and the city’s real estate growth mirrors that status. The combination of infrastructure upgrades, better connectivity, and massive public investment has lifted confidence across asset classes.
Residential demand has led most of the growth. Plot prices have surged the fastest, especially in the immediate radius around the Ram Mandir, where availability is limited and interest remains high. Peripheral areas such as Faizabad Road and Raibareli Road continue to attract buyers looking for more moderate pricing and better long-term prospects. Developers are responding quickly. Omaxe, The House of Abhinandan Lodha and others have launched projects targeted at a mix of end users, investors, and second-home buyers who now view Ayodhya as a long-term bet.
Commercial real estate is undergoing its own transformation. Tourism-led demand has pushed up interest in hotels, retail and office spaces, supported by new infrastructure such as the Ram Path and Ayodhya’s international airport. Leading hotel chains including Taj and Radisson have already committed to properties near the temple precinct. Several other brands are scouting locations as they anticipate an even larger wave of domestic and international visitors in the months ahead.
Ayodhya’s urban landscape is also changing as the Uttar Pradesh government expands the city’s infrastructure. New arterial roads, upgraded civic services, and large-scale beautification initiatives are deepening investor confidence. For the government, tourism is now a central revenue driver, making real estate development an integral part of Ayodhya’s long-term growth plan.
Affordable housing has become another focus area as the city balances rapid tourist-driven development with residential needs. The Ayodhya Development Authority launched the Vashisht Kunj Scheme last year, offering 600 residential plots near the Lucknow–Ayodhya Highway. Phase 1 has already been allotted, while Phase 2 saw registrations extended due to high demand.
The Uttar Pradesh Awas Vikas Parishad (UPAVP) is also developing a Green Field Township near Ayodhya. The project is designed as a modern, environmentally conscious residential cluster with planned amenities and long-term expansion potential. Together, these initiatives aim to build a balanced housing ecosystem to support both local residents and the city’s expanding workforce.
Ayodhya’s evolution from a pilgrimage town to a dynamic real estate market highlights the broader shift underway in India’s tier-2 cities. As the Ram Mandir cements Ayodhya’s place on the global spiritual map, real estate developers, investors and homebuyers are treating the city as a serious, long-term opportunity. The momentum suggests that Ayodhya’s rise is unlikely to be a short-lived boom. It is the start of a sustained growth cycle powered by faith, infrastructure and economic ambition.
