The Uttar Pradesh government has implemented a steep hike in Ayodhya’s circle rates after eight years, triggering a mixed response from locals and real estate stakeholders. The revised rates, effective from Monday, have seen land prices surge between 30% and 200%, particularly within a 10-kilometre radius of the Ram Janmabhoomi Temple, now the epicentre of development and land speculation.

In prime areas like Rakaabganj, Devkali, and Awadh Vihar Yojana, the circle rates have jumped from Rs 6,650–Rs 6,975 per square metre to Rs 26,600–Rs 27,900 per square metre, officials confirmed.

“This revision was long overdue and reflects the ongoing infrastructure boom,” said Shanti Bhushan Chaubey, sub-registrar of Sadar (Faizabad). “The new rates were finalised after addressing objections and approved by District Magistrate Tikaram Funde.”

Chaubey said: “Circle rates have been updated based on location-specific demand. Residential, commercial, and agricultural plots have each been assessed differently. This rationalisation was long overdue.”

While developers have welcomed the move, locals fear it will benefit those who acquired land earlier at lower prices and now stand to profit.

“Big developers bought large chunks of land when rates were low. Now they have the perfect excuse to sell at exorbitant prices,” said Ram Prakash Yadav, a resident of Devkali. “Common people like us are getting priced out of our own city.”

Residents say the rate hike could also affect those planning to buy or transfer ancestral land. “I was thinking of buying a small plot near the bypass for my son’s house. But with the new rates and stamp duty, it is out of reach now,” said Sunita Verma, a school teacher from Faizabad.

Real estate players argue that the revision brings more transparency. “The hike narrows the gap between market and circle rates. It curbs black money and ensures fair valuations,” said Saurabh Vikram Singh, a local developer.

“While a higher circle rate results in increased stamp duty for buyers, it also enhances the official valuation of land, which is beneficial for landowners in securing loans and selling property at realistic prices,” said Singh

Vivek Agrawal, another builder, echoed this view, adding, “With realistic circle rates, property loans and legal documentation also become smoother.”

Circle rates determine the minimum value at which property is registered and are used to calculate stamp duty and compensation during government acquisitions. Authorities say the revised rates will also boost government revenue and reflect the city’s fast-changing urban landscape.

But for many locals, it is a shift that signals growing distance from a city they have long called home.

(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)