Ayodhya’s Land Boom: Circle Rates Soar Up to 200%

A New Dawn for Ayodhya’s Real Estate

The ancient city of Ayodhya, forever etched in the heart of India’s spiritual and cultural tapestry, is witnessing a transformative moment. After nearly eight years of anticipation, the district administration has announced a sweeping revision of land circle rates, with hikes reaching up to 200% in certain areas. This landmark decision, effective from Saturday, is set to reshape the city’s property landscape and mark a new chapter in its journey as a real estate hotspot.

Circle Rates: The Pulse of Property Markets

Circle rates, determined by the district administration, serve as the benchmark for land valuation within its jurisdiction. They form the basis for stamp duty on property transactions and guide compensation for land acquisition, including from farmers. The recent revision in Ayodhya comes after years of soaring market values, especially following the Supreme Court’s 2019 verdict that paved the way for the construction of the Ram Temple, inaugurated in January 2024.

A Decision Rooted in Market Realities

District Magistrate Nikhil Funde revealed that the decision to raise circle rates was made after careful consideration of public feedback and a comprehensive survey. “We have approved the proposal for a hike in circle rate after considering the objections we had received on our proposal circulated in August last year,” Funde told The Indian Express. “The demand from the public was mostly to raise it more than our proposals in several areas. But the decision has been taken based on market rates and a survey conducted by us,” he added.

Where the Biggest Changes Unfold

The steepest hikes have been observed in areas closest to the Ram Janmabhoomi, where land values have surged since the temple’s construction began. For instance, in Tihura Manjha village, the circle rate for agricultural land has jumped from ₹11–23 lakh per hectare to ₹33–69 lakh per hectare. Tihura Uparhar has seen rates rise from ₹32–71 lakh to ₹42–95 lakh per hectare. Shahnawzpur Majha and Barahta Majha now command rates between ₹98 lakh and ₹221 lakh per hectare, up from ₹75–169 lakh. Even Ganja village, home to the new airport, has witnessed an increase from ₹28–64 lakh to ₹35–80 lakh per hectare.

A Growing Township and Mixed Reactions

The Uttar Pradesh Avas Vikas Parishad is planning a sprawling township across nearly 1,800 acres, with over 600 acres already acquired in key villages. While these developments signal progress and investment, some farmers feel the rate hikes do not fully reflect the area’s true potential. “Rates should have been increased at least 200 per cent in every village surrounding nearly 10 km of Ram Janmabhoomi. Farmers are not benefitting from the developments that are taking place in Ayodhya,” said Durga Yadav, who is fighting a legal case for higher circle rates in the Allahabad High Court.

Legal and Administrative Framework

The Uttar Pradesh Stamp (Amendment) Act, 1997, as amended in 2015, mandates that the District Collector revise land values every August, taking into account factors such as land use, irrigation, proximity to infrastructure, and location within urban, semi-urban, or rural areas. Ayodhya was among 54 districts where rates were last revised in 2017, while neighboring districts like Barabanki, Ambedkar Nagar, Gonda, Basti, and Sultanpur have also updated their rates in recent years.

A City on the Rise

With the new circle rates in place, Ayodhya is poised to attract even more attention from investors, developers, and homebuyers. The city’s transformation from a spiritual hub to a premium real estate destination is well underway, promising a future where faith and fortune converge.