NEW DELHI: The Rekha Gupta government is working on a comprehensive review of circle rates across all property categories, from A to H, marking the first structured recalibration in several years to bring reported rates in line with prevailing market trends.While the increase in the number of bounty colonies is modest, sharper increases have been proposed in mid- and lower-tier areas, where officials say market transactions are significantly exceeding existing circle rates, according to details of an internal government report.
Ultra-premium stretches such as Prithviraj Road, Jor Bagh and Sundar Nagar are reportedly seeing market values in the range of at least Rs 18-22 lakh per square meter as the reason there are demands to introduce an A+ category for them.
However, the proposal has also revived calls for reclassification. Residents of New Friends Colony have submitted nearly 70 suggestions, including a collective petition by 121 residents demanding a downgrade from category A to B. They claim that actual transactions have been 35-40% below the prevailing circle rate over the past five years, leading to reduced liquidity and stalled deals. Residents also point out traffic congestion and social challenges, citing the colony’s proximity to Taimoor Nagar, Bharat Nagar and Zakir Nagar, which fall under lower categories. Similar reduction demands have been raised by residents of Kalindi Colony and Sukhdev Vihar, who have cited a 2022 Valuation Commission report recommending reclassification. Conversely, there are demands for upward revision. Property owners in Defense Colony, Greater Kailash (I & II), Gulmohar Park, Niti Bagh and Panchsheel Park – currently in Category B – have sought an upgrade to Category A, arguing that infrastructure and market rates in these areas exceed those of NFC.In Category B, the government has proposed an increase of at least 32%, with the rate being revised from Rs 2,45,520 to Rs 3,25,000 per sq ft. Officials said colonies such as Hauz Khas, Green Park, Punjabi Bagh and Safdarjung Enclave have witnessed an appreciation of 30-50% over circle rates due to redevelopment, construction floors and improved metro connectivity.
Officials said this is not the final report, but the outcome could go in the same direction. Circle rates for properties were last reviewed in 2014. Rates in many luxury colonies are significantly lower than market prices, resulting in large cash components in deals, artificially low property valuations on paper and lower stamp duty collections. In contrast, a few places have circle rates that are actually higher than their current market values, and these are expected to be rationalized downward.
Category C colonies, including Janakpuri, Civil Lines, Vasant Kunj, Netaji Subhash Place, CR Park and Malviya Nagar, are proposed to see rates hike to at least Rs 2.2 lakh per sq ft, reflecting market transactions 40-60% above existing benchmarks.
The proposed revision is more drastic in Category D and E segments. The lower income categories F, G and H – which include areas like Keshav Puram, Krishna Nagar, Laxmi Nagar, Bhalswa Dairy, Narela and Burari – will see increases ranging from 8 to 29%.
Government sources said the aim is to rationalize valuation, improve revenue collection and reduce the gap between notified and actual transaction values without disrupting market stability. The proposal is expected to be submitted to the cabinet after assessing public suggestions. Officials said the exercise is being conducted by a committee formed by CM Rekha Gupta in June.
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