The new rates, which came into effect on Monday, have particularly impacted areas within a 10-kilometre radius of the Ram Janmabhoomi, where rates have jumped by over 150%.
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 DM Nikhil Tikaram Funde and have now been enforced,” he added.
He also said areas with more land transactions saw an increase of 150% to 200%, while other areas saw a rise of 30% to 40%. “Localities like Rakaabganj, Devkali and Avadh Vihar residential schemes are now the most expensive in the district,” Chaubey added.
The circle rates around the temple, a prime location due to religious tourism and infrastructure development, have been revised to Rs26,600-27,900 per square metre — a sharp rise from the earlier rates of Rs6,650-6,975.
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.
As per local developers, an increase in the circle rate also means an increase in stamp duty. However, this benefits landowners as it gives advantages for loans and a good price for land. 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. The government calculates stamp duty based on this rate and if land acquisition is necessary, the price is also determined based on the circle rate.
