Real estate experts have recommended that the Delhi government introduce a new ‘A+’ category while revising the city’s circle rates to better reflect the market value of high-end areas and farmhouse clusters. The proposal aims to cover ultra-premium localities such as Amrita Shergill Marg, Prithviraj Road, Dr APJ Abdul Kalam Road, Golf Links, and Jor Bagh, where property prices often exceed ₹12–15 lakh per sq. m, compared to the current Category A rate of around ₹7.5 lakh per sq. m.

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, according to a report by HindustanTimes.com.

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.”

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.

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.