Ayodhya’s real estate market experienced a dramatic surge following the Ram Mandir bhoomi pujan on August 5, 2020. Property prices in key areas reportedly jumped up to 900%, driven by investor frenzy and anticipated infrastructure growth. This boom defied the broader pandemic slowdown, doubling rates in just over a month.​

Bhoomi Pujan Catalyst

Prime Minister Narendra Modi performed the groundbreaking ceremony, igniting widespread optimism about Ayodhya’s transformation into a global pilgrimage hub. Land prices on the town’s outskirts rose from Rs 400-500 per sq ft last year to Rs 1,000-1,500 per sq ft by late September 2020. In the town center, rates climbed from under Rs 900-1,000 per sq ft pre-Supreme Court verdict to Rs 2,000-3,000 per sq ft post-ceremony.​

Price Surge Details

Reports highlighted a 900% increase in some zones, with average land costs shifting from Rs 400-700 per sq ft in 2019 to much higher levels amid the boom. Overall, prices tripled since the 2019 Supreme Court verdict, with a further doubling after bhoomi pujan—compounding to 30-40% initial gains followed by 100% jumps. Limited land availability, due to government acquisitions for airports, hotels, and roads, fueled the exponential rise.​

Driving Factors

Anticipated tourism influx and Uttar Pradesh’s infrastructure push, including an international airport, attracted buyers from businessmen to commoners seeking religious or investment plots. Despite hesitations over disputed lands, wetlands, and acquisition risks, demand outpaced supply. Experts noted sky-high rates reflecting Ayodhya’s shift from underdevelopment to a potential “India’s Vatican.”​

Investment Outlook

Properties near the temple site promised high appreciation, though caution was advised amid benami deals and regulatory hurdles. The surge positioned Ayodhya as a hotspot, with rates in peripheral areas like Faizabad Road also climbing rapidly.​