NEW DELHI: The Rekha Gupta government is undertaking a thorough revision of circle rates across all property categories, ranging from A to H. This marks the first organized recalibration in years to align notified rates with current market trends.
While premium colonies are set to experience a modest increase, there are steeper hikes proposed for mid- and lower-segment areas, where officials report that actual market transactions often exceed existing circle rates, based on an internal government report.
Areas like Prithviraj Road, Jor Bagh, and Sundar Nagar are reportedly experiencing market values of at least Rs 18-22 lakh per square metre, prompting calls for an A+ category designation.
This proposal has revived discussions on reclassification. Residents of New Friends Colony have submitted around 70 suggestions—including a collective petition from 121 residents requesting a downgrade from Category A to B. They argue that actual transaction prices have been 35-40% below the current circle rates for the past five years, which has led to reduced liquidity and stalled transactions. They also highlight the congestion and civic issues in comparison to nearby areas like Taimoor Nagar, Bharat Nagar, and Zakir Nagar, which are classified under lower categories. Similar requests have emerged from Kalindi Colony and Sukhdev Vihar, referencing a 2022 valuation committee report that recommended reclassification.
Conversely, property owners in Defence Colony, Greater Kailash (I & II), Gulmohar Park, Niti Bagh, and Panchsheel Park—currently classified under Category B—are advocating for an upgrade to Category A, citing that infrastructure and market values in these areas surpass those in New Friends Colony.
The government proposes a minimum 32% increase in Category B rates, raising the price from Rs 2,45,520 to Rs 3,25,000 per square metre. Officials noted that colonies such as Hauz Khas, Green Park, Punjabi Bagh, and Safdarjung Enclave have seen appreciation of 30-50% over existing circle rates due to redevelopment, the rise of builder floors, and improved metro connectivity.
Officials indicated that this is not the final report, but the outcome is likely to be along similar lines. The last revision of circle rates occurred in 2014. Currently, many high-end colonies have notified rates significantly lower than market prices, resulting in sizable cash components in transactions, artificially low property valuations on paper, and decreased stamp duty collections. Conversely, there are some areas where circle rates exceed current market values, which are expected to be downregulated.
For Category C colonies, including Janakpuri, Civil Lines, Vasant Kunj, Netaji Subhash Place, C R Park, and Malviya Nagar, proposed rates may rise to at least Rs 2.2 lakh per square metre, reflecting market transactions that are 40-60% above existing benchmarks.
The proposed revisions are anticipated to be steeper in Categories D and E. For lower-income Categories F, G, and H—covering areas like Keshav Puram, Krishna Nagar, Laxmi Nagar, Bhalswa Dairy, Narela, and Burari—increases ranging from 8-29% are expected.
Government sources stated that the objective is to rationalize valuations, enhance revenue collection, and close the gap between notified and actual transaction values without destabilizing the market. The proposal will be presented to the cabinet after reviewing public suggestions, guided by a committee established in June by CM Rekha Gupta.
