Ayodhya land prices soar as circle rates hiked up to 200%.

It is after a gap of eight years, the circle rates of Ayodhya have been revised upward, with an increase ranging from 30% to 200%, depending on location and land use, officials said here on Monday. The new rates, which came into effect on Monday, have particularly impacted areas within a 10 – Kilometre radius of the Ram Janmabhoomi Temple, where rates have jumped by over 150 per cent.

Shanti Bhushan Chaubey, sub-registrar of Sadar (Faizabad) tehsil, said the revised rates were implemented following a proposal submitted in September 2024. “After addressing objections, the new circle rates were approved by District Magistrate Tikaram Funde and have now been enforced“, he said.

According to Chaubey, the areas witnessing the most active land transactions have seen the steepest hikes. “Localities like Rakaabganj, Devkali and Avadh Vihar residential schemes are now the most expensive in the district“, he added.

The circle rates around the temple, a prime location due to religious tourism and infrastructure development, have been revised to Rs 26,600-27,900 per square metre — a sharp rise from the earlier rates of Rs 6,650-6,975. Chaubey explained that the hike has been applied differentially across various categories of land — residential, commercial and agricultural — in accordance with location-specific demand and usage.

Commenting on the development, Saurabh Vikram Singh, director of a builders’ firm in Ayodhya, said, “An increase in the circle rate also means an increase in stamp duty. However, this benefits the landowners, who by enhancing the official value of land, thereby can seek better loan appraisals and property valuations“.

Vivek Agrawal, a real estate developer, said that the move could help curb unaccounted transactions.

“The problem of ‘number one and number two’ — referring to white and black money in real estate deals — can be addressed with realistic circle rates. This promotes transparency“, he said.

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.

Earlier on 10^th. March, 2025, the Uttar Pradesh government had announced that it will soon revise land circle rates in multiple districts, including Lucknow. Prioritising areas where rates have remained unchanged for years, the process has already been completed in 37 districts since January 1, 2024, with ongoing and upcoming revisions in others, it had announced in a statement.

As the state government had cited that the primary beneficiaries of this revision will be farmers, as it will enable them to receive fair compensation for their land during acquisitions under the law. This focus aligns with the government’s vision of advancing development projects across the state, according to the statement.

District Magistrates are responsible for setting the minimum price per hectare or square meter for agricultural and non-agricultural land in August each year, it said. “If necessary, they may also revise these rates mid-year. This provision has facilitated the completion of the revision process in 37 districts this year“, the government said.

In a review meeting chaired by Chief Secretary Manoj Kumar Singh, directives were issued to expedite the revision process in districts that have been pending for years. These districts include Lucknow, Varanasi, Gorakhpur, Baghpat, Etawah, Kannauj, Hapur, Bulandshahr, Meerut, Maharajganj, Kushinagar, Ayodhya, Ambedkarnagar, Etah, Kasganj, Muzaffarnagar, Badaun, Jhansi, Jalaun, Lalitpur, Sant Kabirnagar, Kaushambi, and Prayagraj.

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