Delhi Circle Rates to Change After 10 Years: Will Property Prices Rise or Fall?

New Delhi: The Delhi government has intensified preparations for major changes in circle rates after 11 years. Rates last revised in 2014 no longer match market prices. In many places the difference was so much that the stamp duty collection reduced. CM Rekha Gupta has constituted a committee under the leadership of the Divisional Commissioner and sought a report on market conditions. Took the first step in June 2025 and issued a public notice in October. Seek suggestions from RWAs, industry bodies, and property owners. Will this revision boost the property market or increase the burden on buyers?

What is the new rule on farmhouses?

Delhi is divided from A to H. A will include houses priced at Rs 7.74 lakh/sq meter, and H will include 23,280 houses priced at Rs 7.74 lakh/sq meter. But the discrepancies are clear: Golf Link and Kalindi Colony are both in A, but there is a huge difference in the facilities. The committee suggested a category for premium areas of Lutyens' Delhi. Urbanized farmhouses in South Delhi sell for crores, but despite being wedding venues and luxury residences, they are valued at agricultural rates. The committee has done a separate location-based valuation for Outer Delhi.

What is the gap between the market vs. circle rate and the reason for revenue loss?

Residential rates were updated in 2014 and agricultural in 2008. Market rates are several times higher. In high-end colonies the cash component is higher and stamp duty is lower. The gap has increased revenue losses and cash deals. In some areas the circle rate is higher than the market, and the transaction is slow. URJA President Atul Goyal said that circle rates should be reduced and a master plan should be implemented. Solve basic problems like sewerage first.

Committee report and cabinet approval—will rates increase or decrease?

The committee has scheduled a meeting next week. Work will be done on categories and subcategories. The senior revenue official said that the revision is not uniform, and there will be an increase in some places and a decrease in some places. CM Gupta sought suggestions from MCD, DDA, DMRC, and CII. After the report, the cabinet will approve and issue notification. Will this change increase investor confidence?

Impact on the property market – 20% deduction ends; what is the benefit of the A category?

The 20% deduction will end from July 2025 (till December 31). Revision will increase revenue but will put a burden on buyers. A category will bring transparency in Lutyens' areas. Will it make Delhi a real estate hub?