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The Ayodhya district administration has revised circle rates for the first time in eight years, with property values rising by 30% to 200% across various localities. The sharpest hikes are seen within a 10-km radius of the Ram Janmabhoomi Temple, where rates have increased over 150%, reflecting growing demand driven by religious tourism and infrastructure projects. Localities like Rakaabganj, Devkali, and Avadh Vihar now rank among the most expensive in the district. The revised rates-ranging from INR 26,600 to INR 27,900 per sq. metre in temple zones-are based on land usage and transaction history. Officials say the update improves transparency and aligns with market trends. The change also affects stamp duty, loan appraisals, and compensation in land acquisition cases. With ongoing developments including roads, hotels, and an international airport, Ayodhya is emerging as a key real estate and pilgrimage hub.
The Ayodhya district administration has implemented a substantial revision of circle rates marking the first such revision in eight years with property values rising by 30% to 200% across various localities. The new rates came into effect earlier this week and are seen as a significant move to align government-notified property values with prevailing market trends. Advertisement
The steepest hikes have been recorded in the vicinity of the Ram Janmabhoomi Temple, an area undergoing rapid development due to heightened religious tourism and infrastructure growth. According to officials, properties within a 10-kilometre radius of the temple have seen circle rates rise by more than 150%, signalling the growing commercial and residential appeal of the area.
Shanti Bhushan Chaubey, sub-registrar of the Sadar (Faizabad) tehsil, explained that the revision followed a detailed proposal submitted in September 2024. After addressing objections from stakeholders, the final rates were approved by District Magistrate Tikaram Funde. Chaubey noted that localities with a high volume of property transactions have experienced the most significant increases.
"The most prominent jump has been witnessed in Rakaabganj, Devkali, and the Avadh Vihar residential schemes," he said, adding that these areas have now become the most expensive in the district.
The revised rates for properties around the temple zone have jumped to INR 26,600 to INR 27,900 per square metre, a sharp increase from the previous band of INR 6,650 to INR 6,975. The circle rate, also known as the guidance value, is the minimum rate at which a property can be registered and forms the basis for calculating stamp duty and registration charges.
Chaubey clarified that the hike has been applied differentially across residential, commercial, and agricultural categories, based on the land's location, usage, and transaction history.
Industry experts believe the revised rates are a step in the right direction. Saurabh Vikram Singh, director of a real estate firm operating in Ayodhya, remarked that although the increase in circle rates would lead to a rise in stamp duty payable by buyers, it simultaneously benefits landowners by enhancing the official value of their assets. "This results in better loan appraisals and property valuations, offering greater financial leverage to property holders," he said.
Echoing similar views, real estate developer Vivek Agrawal stated that the move would promote transparency by reducing the gap between the official and market values of land. He mentioned that realistic circle rates could help eliminate the use of 'black money' in property transactions.
Circle rates also play a key role in determining compensation during land acquisition processes, particularly for public infrastructure or urban development projects. Thus, an increase not only affects the buying and selling of property but also the amount owners receive when land is acquired for public use.
Ayodhya, which has recently seen massive infrastructural upgrades including new roads, hospitality projects, and an international airport terminal, is poised to become a prominent pilgrimage and investment destination. The increase in circle rates is seen as a response to this growing interest in the city's real estate, ensuring regulatory values catch up with market realities.
For landowners, the move promises better access to credit and higher formal property valuations, while developers may need to reassess their pricing strategies. As Ayodhya steps into a new era of planned growth and religious tourism, the updated circle rates offer a more transparent, structured foundation for future real estate development.
Source - PTI
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