Ram Mandir Inauguration: 3 Things to Remember If You Want To Buy Property in Ayodhya
Legal experts say prospective buyers should verify the authenticity of the title and ownership documents of the property in Ayodhya
With a few days left for the Ram Mandir’s inauguration in Ayodhya, the town is witnessing huge interest among real estate investors, hotel players and even senior citizens who wish to invest in property in the religious destination.
The date for the consecration ceremony of Ayodhya's Ram Temple has been scheduled for January 22, 2024.
Real estate brokers say that with several investors from across the country and even overseas chasing a limited number of land parcels, land prices have hit the roof—in some cases four to 10 times the prices prevalent only four to five years ago. The real estate boom has attracted investors from across the country, including senior citizens wanting to invest in second homes and non-resident Indians as well, said brokers.
“Real estate demand in Ayodhya has risen significantly ever since the much-awaited verdict was announced by the Supreme Court back in 2019. There is a growing demand by not just locals but investors from outside the city including businessmen,” said Anuj Puri, Chairman - ANAROCK Group.
Legal experts say that prospective buyers should verify the authenticity of the title and ownership documents of the property in Ayodhya to ensure there are no disputes or legal issues regarding its title.
Property prices in the city were estimated to have shot up by nearly 25-30% in 2019 immediately after the verdict. ANAROCK research indicates that in 2019 post the verdict, land prices had risen to nearly ₹400-700 per sq. ft. in the outskirts (at Faizabad Road). Within the city-limits average prices stood between ₹1,000 – 2,000 per sq. ft. during this time.
However, as on date (October 2023), the average land prices in the outskirts of Ayodhya have jumped up to anywhere between ₹1,500 per sq. ft. and ₹3,000 per sq. ft. As for areas within city limits, average prices have shot up to be anywhere between ₹4,000 and ₹6,000 per sq. ft. Thus, there has been a significant jump in average prices between 2019 and 2023.
Prospective homebuyers should check the local zoning laws and regulations governing land use in order to confirm the permitted use of the subject property. Also, in view of the historical and religious importance of Ayodhya, there may be certain restrictions on construction or development activities in specific areas.
“It is, therefore, important to conduct a thorough due diligence to be aware of property related regulations including usage, construction and development norms and restrictions thereto,” said Mona Dewan, Managing Associate at ZEUS Law Associates, a full service corporate commercial law firm.
Infrastructure facilities. It is important to check for the state of infrastructure in the area where you wish to invest. Before getting into a property purchase deal, it is also important to check the availability and adequacy of basic utilities such as water supply, electricity, and sewage systems and assess whether the existing infrastructure meets your requirements. Also check for accessibility and proximity of the property to major roads, highways, and public transportation hubs, since good connectivity enhances the value of the property and improves business prospects, she said.
Future Development Plans. A detailed investigation into the city's master plan is also desirable in order to understand any infrastructure/ proposed development projects or changes in the existing planning and development norms. This insight can provide a glimpse into the future growth and potential appreciation of the subject property. Further, proposed purchasers should stay informed about any proposed changes in local regulations which may impact land use and resulting impact on value of the property, she added.
Pankaj Kapoor of Liases Foras is of the opinion that while there may be immediate opportunities for commercial real estate development with a surge in hotel developments. However, housing projects may take time and would depend on the floating population that converges into the city as religious tourists want to buy second homes in the city.
That's perhaps one of the reasons why even though several developers have bought land in Ayodhya, many of them are waiting for the inauguration of the temple and will launch projects only after getting a sense of the number of footfalls, say realtors.
Townships and private hotels
Several townships and private hotels are expected to come up in the city, land for which has been sanctioned by the government. These land parcels are located around Chaudah Kosi Parikrama, Ring Road, and the Lucknow-Gorakhpur Highway.
The Ayodhya Development Authority is planning to come up with a housing scheme soon. “This will be a plotted scheme spread across 80 acres of land,” Satyendra Singh, secretary, Ayodhya Development Authority, told Hindustan Times Digital.
Between April and November this year, as many as 30,000 sale deeds were registered in Ayodhya, 80 percent of which were from land transactions.
The House of Abhinandan Lodha (HOABL), a Mumbai-based real estate developer plans to launch a 25-acre plotted development project in Ayodhya after the inauguration of the temple. The project is located almost 15 minutes from the upcoming temple.
Real estate body NAREDCO is also planning to organise a builders' conference in Ayodhya to tap its commercial and residential opportunities as the holy city gears up to attract lakhs of tourists post inauguration of the Ram temple on January 22.
National Real Estate Development Council (NAREDCO) National President G Hari Babu has said there are opportunities to set up hotels, resorts and apartments in Ayodhya as the tourist flow would increase in the coming months.
By Vandana Ramnani
Jan 10, 2024 11:30 AM IST