Delhi Government Plans Major Circle Rate Revision After Ten Years To Match Real Market Value

New Delhi: The Delhi government is planning a major change in circle rates after a gap of ten years. The last revision happened in 2014. Since then, property prices in areas like Lutyens’ Delhi, South Delhi and urban belts have increased drastically, while official rates remained unchanged. This gap created discrepancies between real and documented values. The government now aims to match official rates with actual market pricing. Officials believe accurate valuation will support transparency across the sector and reduce irregularities in property transactions.

What Is The Current Circle Rate Structure?

According to recent reports, Delhi currently has eight property categories ranging from A to H. In Category A, circle rates go up to Rs.7.74 lakh per square metre, while Category H has rates as low as Rs.23,280 per square metre. However, experts point out that these categories do not reflect real market differences. For instance, Golf Links and Kalindi Colony are both in Category A, but their market values are significantly different. This inconsistency has made categorisation outdated and in need of scientific restructuring.

How Is The Government Losing Revenue?

Experts argue that the current system leads to major revenue loss for the government. In areas where real market rates are much higher than the official rate, property prices are shown lower in documents. This reduces stamp duty and registration revenue. In contrast, some localities have circle rates higher than market prices, which slows down transactions. Buyers avoid such areas due to elevated official rates. Correcting these values may help increase government earnings and improve transaction accuracy.

Will A+ Category Be Introduced For Premium Zones?

Sources suggest the government is considering introducing an A+ category for ultra-premium areas such as Lutyens’ Delhi. These locations currently fall under Category A but command prices far beyond other parts of the same group. By adding a higher-tier category, the circle rate system will represent premium colonies more realistically. This may improve valuation and reduce the gap between reported and actual prices. It is seen as an important step for upscale residential zones.

What About High-Value Farmhouse Properties?

Farmhouses in urbanised districts of South Delhi sell from crores to even hundreds of crores. They are often used for weddings, parties and commercial events. Despite this, their circle rate is still calculated as agricultural land, which is far below real market value. Proposed changes suggest farmhouses should be priced based on location and surrounding property rates rather than outdated agricultural benchmarks. Experts believe this adjustment will reflect their true commercial worth.

Will Property Become Costlier Or Cheaper?

If circle rates increase in high-end zones, stamp duty and registration charges may rise, making property more expensive there. However, in areas where circle rates exceed market value, revised lower rates could make property purchases more affordable. The goal is not to increase prices but to reflect actual market conditions. Final impact will vary based on locality and property type. Buyers should wait for revised rates before finalising key transactions.

What Is The Expected Outcome For The Real Estate Market?

Officials believe the revision will bring market clarity, reduce cash-based deals and establish a more transparent property system. By aligning government rates with real pricing, transactions will be recorded more accurately. Real estate experts expect improved stability across sectors once the updated structure is implemented. The proposal is under advanced review and official notification is expected soon. Overall, the long-pending change aims to support fair property valuation and strengthen Delhi’s real estate framework.