Delhi Circle Rate Revision: Experts Propose 'A+' Category for Premium Areas
Real estate experts have suggested the introduction of a new 'A+' category in Delhi's circle rate revision to better align with the premium and farmhouse zones where property values far exceed existing rates.
Circle RatesReal EstateDelhiA CategoryProperty ValuesReal EstateOct 30, 2025
Experts said such a revision would help bring greater alignment between notified and prevailing market values. They added that creating an A+ category and rationalising rates across categories A–H would modernise Delhi’s valuation framework, ensuring fairness, transparency, and improved revenue efficiency.
The Delhi government had sought suggestions on revising the prevailing circle rates in the Capital earlier this month. The revenue department had said the revision “aims to bring the notified rates in alignment with prevailing market rates.”
### What are circle rates?
Circle rates are the minimum property prices fixed by the government for the sale or transfer of land, residential, commercial, or industrial properties in a particular area, depending on locality and property type. The last revision in Delhi took place in February 2015. In June this year, the government directed officials to initiate the revision process by forming a committee under the chairmanship of the divisional commissioner. A proposal was made in 2022 to increase the circle rates in some select areas, but that could not be implemented.
### What have real estate experts proposed?
Given the exceptional land values and limited transaction volumes in Delhi’s most prestigious enclaves, Sotheby’s International Realty has recommended that a new Category A+ be introduced for areas such as Amrita Shergill Marg, Prithviraj Road, Dr APJ Abdul Kalam Road, Tughlaq Road, Golf Links, and Jor Bagh. These locations command benchmark prices far above those of other Category A areas, often exceeding ₹12–15 lakh per square meter in open-market transactions. The prevailing rate in category A areas is around ₹7.5 lakh.
“Accordingly, a realistic circle rate for this new A+ Category may be set at ₹10 lakh per sq m,” opined Amit Goyal, Managing Director, India Sotheby’s International Realty.
It has also been said that farmhouses are increasingly classified as part of urbanised Delhi. Yet, circle rates continue to be applied to agricultural values, with prices ranging from ₹54 lakh to as high as ₹30 crore per acre, creating a significant mismatch.
“Farmhouse circle rates should be benchmarked to, and differentiated by, geographical zones. This will align valuations with reality, enhance transparency, and plug significant revenue leakages to the exchequer,” said Goyal.
Sotheby’s has proposed that the Revenue Department of the Government of Delhi-NCT classify premium farmhouse clusters under Category G. These include Westend Greens, Vasant Kunj, DLF Chhatarpur, and Pushpanjali, where the circle rate is around ₹75,000 per sq. m. (approximately ₹30 crore per acre). All other farmhouse areas currently fall under Category H, with circle rates of approximately ₹50,000 per square meter (around ₹20 crore per acre).
It has also recommended introducing a dynamic review mechanism, with a biennial (every two years) revision of circle rates based on market indices such as NHB RESIDEX and DDA’s land auction benchmarks. A stakeholder committee comprising RWAs, real estate experts, valuers, and government officials should be formed to validate data before each revision. All notified rates should be made accessible online in a GIS-linked format for transparency.
“These would improve transparency and accuracy in property valuation and registration. Lead to increased stamp duty and registration revenue and greater compliance and investor confidence through a more equitable framework,” said Goyal.
“We deeply appreciate this initiative by the Government of NCT of Delhi. We also believe firmly that the creation of an A+ Category and rationalised rate structure across Categories A–H will modernise Delhi’s valuation framework and align it with current market realities, ensuring fairness, transparency, and enhanced revenue efficiency,” he said.
### Some areas in Delhi see transactions occurring below the prevailing circle rate
Since the last circle rate revision in December 2021 and even prior to that, market rates in several south Delhi localities, most of them categorised under ‘Category A’ remained significantly below the notified circle rates, said Vasant Singh of Property Gallery, a South Delhi-based real estate brokerage firm specialising in premium properties.
However, with the real estate market witnessing substantial growth over the past few years, property prices in these areas have risen considerably and, in most cases, now exceed the circle rates.
“Given this mixed trend, the government should consider a rationalisation exercise for circle rates in these localities. Any further upward revision without proper assessment could potentially dampen property transactions and put pressure on the market,” he said.
At the same time, in parts of Lutyens’ Delhi and several other South Delhi premium localities like West End, Shanti Niketan, among others, market rates are already much higher than the existing circle rates. In such areas, an upward revision would be both practical and beneficial, helping bring official valuations closer to market realities while also enhancing government revenue, he said.
Agrees Ankur Jalan, CEO, Golden Growth Fund (GGF), a Category-II real estate-focused Alternative Investment Fund (AIF) designed for South Delhi.
The suggestion to introduce a new Category A+, applicable to certain localities such as Malcha Marg, Jor Bagh, and Amrita Shergill Marg, would be a positive step towards improving transparency in the real estate market. A 50% increase in circle rates for Category A+ colonies would bring them in line with current market values. Similarly, raising rates by 20% in Category A and at least two times the current market rate of Category B colonies would help realign these segments with present-day market realities, he said.
For farmhouses, the government should introduce a separate categorisation based on location, with a defined base rate for each category. These base rates should be significantly higher than current market values to correct the significant mismatch that currently exists in this segment, he added.
Frequently Asked Questions
What are circle rates?
Circle rates are the minimum property prices fixed by the government for the sale or transfer of land, residential, commercial, or industrial properties in a particular area, depending on locality and property type.
Why is the Delhi government revising circle rates?
The Delhi government is revising circle rates to bring the notified rates in alignment with prevailing market rates, ensuring fairness, transparency, and improved revenue efficiency.
What is the proposed 'A+' category?
The proposed 'A+' category is for premium areas and farmhouse zones in Delhi where property values far exceed those in existing Category A areas, often crossing ₹12–15 lakh per sq. m in open market transactions.
How will the introduction of the 'A+' category benefit the real estate market?
The introduction of the 'A+' category will help bring greater alignment between notified and prevailing market values, modernise Delhi’s valuation framework, and ensure fairness and transparency.
What are the challenges with current farmhouse circle rates?
Current farmhouse circle rates are applied to agricultural values, with prices ranging from ₹54 lakh to as high as ₹30 crore per acre, creating a significant mismatch with market values. Introducing a separate categorisation based on location is recommended to correct this mismatch.
Related News Articles
Unlocking Mumbai's Real Estate Potential: MHADA Auctions Plots Worth Rs. 192.26 Crore
A step towards making India a real estate powerhouse, MHADA's auctions set a new benchmark
315Work Avenue Expands its Footprint in Pune, Reaching 1 Lakh Square Feet of Office Space at ITPP
315Work Avenue, a leading coworking space provider, has leased an additional 56,000 sq ft of office space at International Tech Park Pune (ITPP), taking its total space to 1 lakh sq ft. Get more real estate news and business news here.
Agricultural Land: A Smart Investment Option Beyond Traditional Real Estate
Ensure the property is dispute-free and explore the benefits of investing in agricultural land, including potential tax benefits and opportunities for tourism and farming.
Texas Housing Market Cools Down: A Sign of Things to Come?
After a pandemic-fueled frenzy, the Texas housing market is showing signs of slowing down. Cities like Austin are experiencing a drop in home prices, and residents are growing increasingly frustrated.
Delhi's Luxury Real Estate Market Soars with Sunder Nagar Bungalow Selling for INR 96 Crore
Luxury home sales in Delhi-NCR, particularly those priced above INR 4 crore, have surged by 38% in 2024, according to CBRE. The recent sale of a Sunder Nagar bungalow for INR 96 crore underscores the growing demand for premium properties in the region.
Revaa Homes Unveils Tailored Real Estate Solutions for Navi Mumbai Buyers
Navi Mumbai’s real estate market is booming, but navigating it can be a daunting task. Revaa Homes has stepped in to simplify the process with curated solutions designed specifically for buyers in the region.