The Uttar Pradesh government has planned a 1,000-acre township in Ayodhya that will be a blend of contemporary and traditional architectural elements, Nitin Gokarn, the state's additional chief secretary for housing and urban development.

The 'New Ayodhya', for which the state government has already secured land, will be India's first vastu-based township, he said.

With the Ram Mandir's inauguration set for January 22, developers are lining up to acquire land in the region for commercial and residential development.

"New Ayodhya City is going to be a river-centric city with a focus on sustainability," said Gokarn. "It is going to be in one of the best cities in the county."

The senior official said they recently auctioned a plot for a hotel, where the reserve price was Rs 88,000 per sqm, and the successful bid was for Rs 108,000 sqm.

"We are witnessing significant demand. We have initiated registrations for the state guest house, and subsequently, the commercial development plots will be put up for auction," said Gokarn. "There is a shortage of clean properties, and the government is committed to assisting developers in acquiring such land."

Land prices and property-related transactions in the city have shot up by 50% since the groundbreaking ceremony for a grand temple to Ram was performed in August 2020.