Ayodhya’s transformation into a major pilgrimage destination is reshaping its real estate market, with land prices near the Ram Mandir rising up to tenfold since 2019. The city recorded approximately 300 million visitors in 2025, up from 164 million in 2024 and around 6 million in 2020, according to Liases Foras’ report, Ayodhya 2.0: Faith, Tourism and the New Investment Capital.
The surge in visitors following the consecration of the Shri Ram Janmabhoomi Mandir on January 22, 2024, has accelerated investment in hospitality, transport infrastructure and urban development. With more than 50 major hotel projects under construction and prime-corridor property rates projected to reach Rs. 37,300 per sq ft by 2031, Ayodhya’s growth is extending beyond pilgrimage tourism into a broader real estate and investment market.
Rs. 85,000 Crore Master Plan to Drive Urban Development
The Ayodhya Development Authority’s Master Plan 2031 has a committed outlay of Rs. 85,000 crores. The plan covers airport and railway expansion, road networks, the Sarayu riverfront, public infrastructure and the proposed 1,407-acre New Ayodhya township.
These projects are expected to support the city’s growing visitor numbers while creating opportunities for residential, commercial and hospitality-led developments. Improved connectivity and the expansion of urban infrastructure are also expected to influence real estate demand across Ayodhya.
The Maharishi Valmiki International Airport connects the city to major metropolitan destinations, with its Phase II expansion expected to increase annual passenger capacity to six million. The redeveloped Ayodhya Dham Junction can handle more than 60,000 passengers daily.
Other major connectivity projects include the 67-km Ayodhya Ring Road, a Rs. 12,000 crore National Highways Authority of India (NHAI) regional road-widening programme and the Ramayana Circuit, which are expected to improve regional and intra-city access.
Land Prices Near Ram Mandir Rise Up to 10 Times
Ayodhya’s expanding tourism economy has coincided with substantial appreciation in land prices. According to Liases Foras, land prices across the city have increased by 25% to 40% since 2019, while areas immediately surrounding the Ram Mandir have recorded price increases of five to ten times.
The report projects property rates along prime corridors to reach approximately ₹37,300 per sq ft by 2031, representing a potential 2.5-fold increase over the next five years.
The market is also witnessing emerging demand for second homes and branded residences. As visitor stays extend beyond single-day pilgrimages, demand for accommodation and properties linked to tourism, wellness and cultural experiences is expected to broaden.
More Than 50 Hotel Projects Under Construction
Ayodhya’s hospitality sector is expanding to accommodate the growing number of visitors. More than 50 major hotel projects are currently under construction, including developments associated with Taj, Marriott, Radisson, Oberoi, Leela and Ginger. The city’s existing organised hotel inventory stands at approximately 1,200 rooms.
Average visitor stays have increased to around two to four days. The report projects this could rise to five to seven days by 2030-35 as spiritual circuits, cultural tourism, wellness offerings, festivals and riverfront activities expand.
The growth in visitor numbers and length of stay is expected to create opportunities across hotels, retail, transport and other tourism-related businesses.
Tourism Growth Supports Jobs and Local Businesses
The report estimates that more than 1.2 lakh jobs have been generated across hospitality, retail and construction since 2024. Ayodhya is also estimated to contribute approximately 1.5% of Uttar Pradesh’s gross state domestic product (GSDP).
The impact of tourism is visible among small businesses as well. Average daily earnings of small shopkeepers have increased from Rs. 400 – Rs. 500 to around Rs. 2,500, while additional annual GST revenue associated with the tourism boom is estimated at approximately Rs. 400 crore.
These developments indicate that the expansion of tourism is creating economic opportunities beyond large infrastructure and real estate projects.
Ayodhya’s Real Estate Outlook Through 2035
According to Pankaj Kapoor, Managing Director of Liases Foras, the increase in visitor numbers is supporting a broader economic base across hospitality, retail, transport and real estate.
“Ayodhya’s tourism growth is not simply increasing visitor numbers. It is creating a wider economic base across hospitality, retail, transport and real estate. With infrastructure capacity expanding and visitor stays expected to lengthen, the city is moving towards a more diversified tourism and property market,” Kapoor said.
The report expects Ayodhya’s tourism and urban economy to continue expanding through 2035, supported by infrastructure investment, rising hospitality capacity and longer visitor stays. Demand is expected to extend across residential, plotted and hospitality-led developments as the city develops beyond its initial post-consecration tourism surge.
The pace and sustainability of this growth will depend on the progress of planned infrastructure, the expansion of hospitality supply and the ability to attract visitors for longer stays. These factors are expected to shape Ayodhya’s next phase of urban and real estate development.
