Real estate pros urge the Delhi government to add an ‘A+’ category as it updates circle rates across the city. This new group would target upscale spots and farmhouse districts. Prices there beat out current Category A zones by a lot. Market deals often top ₹12-15 lakh per square meter.
Such an update would tie official rates closer to actual market prices. Experts note that an A+ tier, plus tweaks to rates in categories A through H, would refresh Delhi’s property system. It would boost fairness, openness, and government income from fees.
The Delhi government called for input on circle rate changes earlier this month. Its revenue team aims to sync set rates with real-world market levels.
Circle rates set the lowest prices for government-approved sales or transfers of land, homes, offices, or factories. These depend on the spot and building type. Delhi’s last tweak came in February 2015. Back in June, officials formed a panel led by the divisional commissioner to kick off the process. A 2022 idea to hike rates in key areas fell through.
Experts push for this shift because top Delhi neighborhoods show sky-high land costs and slim deal numbers. Sotheby’s International Realty calls for an A+ category in places like Amrita Shergill Marg, Prithviraj Road, Dr APJ Abdul Kalam Road, Tughlaq Road, Golf Links, and Jor Bagh. These spots fetch prices well over other A areas. Open-market sales there often pass ₹12-15 lakh per square meter. Right now, Category A rates sit at about ₹7.5 lakh.
A fair circle rate for the new A+ could land at ₹10 lakh per square meter, says Amit Goyal, head of India Sotheby’s International Realty.
Farmhouses now blend into city life in Delhi. Still, their rates stick to farm land values. Those run from ₹54 lakh up to ₹30 crore per acre. This gap stands out.
Farmhouse rates need to match zones by location. That would ground values in facts, add clarity, and cut revenue shortfalls for the government, Goyal adds.
Sotheby’s wants the revenue department to slot elite farmhouse areas into Category G. Think Westend Greens, Vasant Kunj, DLF Chhatarpur, and Pushpanjali. Their rate hovers at ₹75,000 per square meter, or roughly ₹30 crore per acre. Other farmhouses stay in Category H at about ₹50,000 per square meter, around ₹20 crore per acre.
The firm also backs a fresh review system. Update rates every two years using tools like NHB RESIDEX and DDA land sale data. Form a group with resident groups, property pros, appraisers, and officials to check facts each time. Put all rates online with GIS maps for easy access.
These steps would sharpen property checks and sales records. They would raise stamp duty cash, cut rule breaks, and build trust with buyers via even rules, Goyal says.
We welcome the government’s move in Delhi. A new A+ and balanced rates from A to H would update the system to fit today’s market. It would deliver fairness, clarity, and stronger revenue gains, he notes.
In some Delhi zones, deals still dip under circle rates. Since the December 2021 update, and before that, south Delhi Category A spots saw market prices lag behind official ones, says Vasant Singh of Property Gallery. This firm handles high-end sales in south Delhi.
Lately, the property boom has lifted prices a lot in those areas. Most now top the circle rates.
With ups and downs like this, the government should review and adjust rates there. A blind hike might slow sales and strain the market, he warns.
Yet in Lutyens’ Delhi and other south premium areas like West End and Shanti Niketan, market prices already outpace official rates. A raise there makes sense. It would close the gap to real values and pad government funds, Singh says.
Ankur Jalan, head of Golden Growth Fund, a south Delhi-focused real estate fund, backs this view.
Adding A+ for spots like Malcha Marg, Jor Bagh, and Amrita Shergill Marg would clear up market views. A 50% bump in A+ rates would match today’s prices. A 20% rise in Category A, and at least double for Category B spots, would fix those to current levels, he says.
For farmhouses, set apart groups by location with base rates per tier. Make those bases much higher than now to fix the big gap in this area, he adds.