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Uttar Pradesh is set to embark on a transformative project with plans for a 1,000-acre township in Ayodhya, named 'New Ayodhya.' Aiming to be India's first vastu-based township, it will harmonize contemporary and traditional architectural elements. Nitin Gokarn, the state's additional chief secretary for housing and urban development, expressed that the project signifies a unique blend of sustainability and cultural richness. He mentioned that land for the project has already been secured.
With the inauguration of the Ram Mandir scheduled for January 22, there's a rising interest from developers eyeing commercial and residential opportunities in the region. 'New Ayodhya City' intends to be river-centric, emphasizing sustainability, and is positioned to become one of India's premier cities.
The state government's strategic move for the new city involved auctioning a plot for a hotel which witnessed high demand. Gokarn mentioned the successful bid for the plot, emphasizing the scarcity of clean properties. Registrations for the state guest house have commenced, and commercial development plots will be up for auction to meet the escalating demand.
Since the groundbreaking ceremony for the Ram Mandir in August 2020, land prices and property transactions in Ayodhya have surged by 50%. Developers across India are expressing keen interest, anticipating a surge in tourism. Local investors, fueled by uncertainty in land acquisition rules, are currently steering the sales momentum.
Estimates from the Ram Temple Trust project a significant daily influx of 80,000-100,000 visitors once the temple is ready. This surge in demand has led to a notable increase in property prices in Ayodhya, estimated at 25-30% in 2019 following the Supreme Court's decision to award the disputed religious site to Hindus.
The government has assured facilitation to investors through existing subsidy and incentive policies. Ayodhya's appeal is not limited to the temple inauguration day; hotels in and around the city are sold out or available at steep rates for the entire month. The overflow of demand extends to neighboring cities like Lucknow, Prayagraj, and Gorakhpur.
Sarbendra Sarkar, founder of Cygnett Hotels & Resorts, highlighted the high average daily rate, reaching ?85,000, and the Cygnett Collection KK Hotel in Ayodhya contributing 45% of rooms to the temple trust for dignitaries. New hotels, such as Park Inn by Radisson, are already fully booked for the temple inauguration dates.
Lucknow, situated 140 km from Ayodhya, has become a preferred choice for travelers due to limited branded options in Ayodhya. Lucknow boasts the largest number of rooms in the organized sector for the region, with 24 branded hotels and 2,251 operational keys. Chain hotels like Taj Mahal Lucknow and Renaissance Lucknow are experiencing high demand and limited availability during the temple inauguration period.
Industry insiders anticipate hotel supplies from chains like Indian Hotels Company (IHCL), Marriott International, Sarovar, and Wyndham Hotels & Resorts post-2024. IHCL's Vivanta and Ginger branded hotels in Ayodhya are aligned with the Tata group's vision to strengthen its presence in spiritual centers, expected to be operational in early 2027.
An optimistic outlook envisions Ayodhya emerging as a global spiritual center comparable to destinations like the Vatican City and Mecca. Oyo's Anuj Tejpal emphasized the potential rise in demand from the financial year 2025. Dikshu Kukreja, managing principal at CP Kukreja Architects, envisioned a demand for at least 30,000 rooms in Ayodhya across different categories throughout the year.
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