After a span of eight years, the circle rates in Ayodhya have been revised upwards, with increases varying from 30 percent to 200 percent based on location and land use, as reported by officials on Monday.
The newly established rates, effective from Monday, have significantly affected areas within a 10-kilometre radius of the Ram Janmabhoomi Temple, where rates have surged by more than 150 percent. Shanti Bhushan Chaubey, the sub-registrar of Sadar (Faizabad) tehsil, indicated that the revised rates were enacted following a proposal made in September 2024.
After addressing the objections raised, the new circle rates received approval from District Magistrate Tikaram Funde and have now been put into effect, he stated. According to Chaubey, the regions experiencing the highest volume of land transactions have encountered the most significant increases.
Areas such as Rakaabganj, Devkali, and the Avadh Vihar residential schemes have now become the priciest in the district, he noted. The circle rates surrounding the temple, a key area due to religious tourism and infrastructure growth, have been revised to Rs 26,600-27,900 per square metre, marking a substantial increase from the previous rates of Rs 6,650-6,975.
Chaubey clarified that the increase has been applied variably across different categories of land—residential, commercial, and agricultural—based on location-specific demand and usage. In response to this development, Saurabh Vikram Singh, director of a construction firm in Ayodhya, remarked, An increase in the circle rate also results in a rise in stamp duty. However, this is advantageous for landowners as it elevates the official value of land, thus facilitating improved loan appraisals and property valuations.
Vivek Agrawal, a real estate developer, expressed that this initiative could assist in reducing unaccounted transactions. The issue of ‘number one and number two’—referring to white and black money in real estate transactions—can be mitigated with realistic circle rates. This fosters transparency, he stated. Circle rate is the minimum value at which a property can be registered in a particular area.
It serves as the baseline for calculating stamp duty and is also considered for determining compensation in land acquisition cases.