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The Delhi government has begun a comprehensive overhaul of circle rates, its first major review in over a decade, to bring property valuations closer to current market realities. Officials said a new 'A+' category is being created for ultra-luxury areas like Lutyens' Delhi, where market prices far exceed the existing top slab. Farmhouse valuations, especially in south Delhi, are also under reassessment, as many continue to be taxed at agricultural rates despite functioning as high-end residences or event venues. With categories last updated in 2014 and 2008, the committee is examining both upward and downward revisions and will seek public feedback before finalising its recommendations.
The Delhi government has begun an extensive overhaul of circle rates to align property valuations with current market conditions, marking the first major review in more than ten years. The existing structure has left significant disparities between notified rates and actual transaction values, particularly in premium areas and farmhouse belts. Advertisement
Officials involved in the exercise explained that a new 'A+' category is being drafted for ultra-luxury enclaves such as Lutyens' Delhi, where market prices are far higher than the top slab currently recognised under Category A. They noted that the mismatch between real-world valuations and official benchmarks in these neighbourhoods is among the widest in the city.
The committee is also reassessing farmhouse valuations, especially in the urbanised pockets of south Delhi. Despite being used as luxury residences or event venues, these properties continue to be assessed at agricultural land rates, resulting in gross undervaluation. Officials described the gap as substantial and long overdue for correction.
Delhi's circle rates were last reviewed in 2014 for residential and commercial properties and in 2008 for agricultural land. Since then, market prices across many localities have undergone significant changes, while the notified categories-ranging from A to H-do not accurately reflect the transformation in real estate dynamics. For instance, localities like Golf Links and Kalindi Colony both fall under Category A, despite vast differences in property values and infrastructure.
Currently, the top category begins at INR 7.74 lakh per sq. metre and drops to INR 23,280 per sq. metre in the lowest category. Officials pointed out that the city's diverse development patterns, infrastructure variations and land-use changes necessitate a more nuanced categorisation.
The review is being led by a committee chaired by the divisional commissioner, constituted earlier this year by the Chief Minister, who also oversees the revenue department. The panel is examining the possibility of both upward and downward revisions, depending on the locality, and plans to incorporate public feedback before submitting its final recommendations for approval.
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