Ayodhya’s much-anticipated real estate boom appears to have lost some momentum, with the temple town recording no new real estate project in the first six months of 2026, even as Varanasi, Mathura and Prayagraj attracted sizeable investments.
According to data cited in a report on real estate activity in Uttar Pradesh’s major religious cities, 16 projects totaling Rs 1,631.31 crore were announced across seven religious cities during the first half of 2026. The investment was significantly higher than the Rs 982.26 crore committed to 19 projects during the corresponding period of 2025.
Varanasi emerged as the biggest investment destination during the period, attracting Rs 943.99 crore through six projects. In the first half of 2025, the city had recorded four projects with investment of Rs 205.09 crore. The number of housing units also increased from 355 to 708.
Mathura witnessed a different trend. The number of projects declined from 12 in the first half of 2025 to six in the same period of 2026, but investment rose from Rs 461.21 crore to Rs 739 crore. The number of housing units more than doubled from 1,298 to 2,819.
Prayagraj also recorded a sharp rise in investment. The city attracted Rs 363.52 crore through four projects in the first half of 2026, compared with Rs 83.36 crore through three projects in the corresponding period last year. Housing units increased from 187 to 340.
Ayodhya, however, stands out in the data. Despite the rapid expansion of religious tourism following the inauguration of the Ram temple and expectations of sustained demand for hotels, housing and commercial properties, the city did not record a new real estate project in the first half of 2026. The contrast is particularly significant because Ayodhya had attracted three projects involving 553 housing units and Rs 206.18 crore in investment during the first half of 2025.
Real estate consultant Sanjay Gupta said the steep increase in Ayodhya’s circle rates has substantially increased the cost of land. Land rates and government circle rates in Ayodhya have risen sharply following the latest revisions. The steepest increase has been reported around the Ram Mandir core zone, where baseline circle values have moved from around Rs 6,650 to as high as Rs 27,900 per square metre, representing an increase of up to 200 percent.
