New, renovated temples paving way to realty boom

The grand opening of Ayodhya's Sri Ram temple is not only a significant religious event but also holds immense economic potential. The temple makeover, including a new airport and infrastructure improvements, is poised to attract over 50 million tourists annually, transforming Ayodhya into a global religious and spiritual hotspot.

“The renovation of big temples like Ayodhya Ram Mandir, Puri Jagannadh Mandir and also Yadadri temple can boost real estate sector in those respective cities,” says G Hari Babu, President of the National Real Estate Development Council (Naredco). He is also the Chairman of Hyderabad-based real estate and infrastructure company Lahari Group.

Speaking to Bizz Buzz, he says: “The construction of new temples and renovation of significant temples hold the potential to bring about positive impacts on the real estate sector in their respective cities. The increased demand for accommodation arises from the surge in pilgrimage influx. Also, these temples often attract a larger number of pilgrims due to enhanced grandeur and accessibility.”

The growing number of tourists and visitors will create demand for various types of lodging, from budget-friendly hotels to luxury resorts. Additionally, the improved image and tourism appeal of the upgraded temple complexes contribute to increased demand for hotels, restaurants, entertainment options, and retail spaces. This will pave way for the real estate boom in the respective cities.

The Central and State governments are spending huge funds in not only building the temples but also developing the infrastructure around them. Sri Ram temple in Ayodhya was constructed with an estimated cost of Rs 1,800 crore, while the state-of-the-art airport was developed at a cost of more than Rs 1,450 crore.

Similarly, the Odisha government has recently revamped Puri Jagannath Temple at a cost of Rs 800 crore, but it has spend overall Rs 4,200 crore for the development of the city under the Augmentation of Basic Amenities and Development of Heritage and Architecture (ABADHA) initiative, which aims to enhance the experience of pilgrims and tourists.

Gummi Ram Reddy, national vice president of Confederation of Real Estate Developers' Association of India (Credai) and CMD of Hyderabad-based realty firm Ark Group, said: “Around 6.5 crore people have visited Varanasi during last year, beating major tourist destinations in India like Goa and Agra. Recently, we have attended New India Summit at Varanasi. We were impressed with the progress in the city.”

“On a lighter note, Lord Ram will definitely overtake Lord Shiva in attracting more number of piligrims to Ayodhya when compared to that of Varanasi. Already, the government has created the required roads, railway station and airport. Other infrastructural developments are taking place at a rapid pace. With this, the land values in Ayodhya have grown tremendously in the last few years,” he added.

According to the realty experts, the land rates have gone up 200-300 per cent in Ayodhya real estate market today when compared to the prices a year ago. They will keep increasing continuously until next five years. Several people are buying villas and individual properties to rent out to the tourists on Airbnb. Also, the wealthy and rich pilgrims are building homes here to use them as guest houses.

Ayodhya is developing not only as a temple city or a tourist destination; it is expanding day by day with a number of hotels, resorts and other buildings. Very soon, many educational institutions, hospitals and shopping malls will come up here. This will open up a lot of employment opportunities. Any such developments in a city will directly or indirectly benefit the real estate sector.

After the renovation of Sri Lakshmi Narasimha Swamy Temple at Yadadri near Hyderabad with an estimated budget of Rs 1,800 crore, it has seen a comprehensive impact on the real estate sector in the capital city of Telangana. Similar boom is expected in all the cities where new temples are being constructed or famous temples are being renovated.