Delhi is set for its most significant circle rate overhaul in more than a decade, with the government weighing sweeping structural changes to bring official property valuations closer to actual market prices.

Among the key proposals under discussion are the introduction of a new A+ category for ultra-premium Lutyens’ Delhi, a complete reworking of farmhouse valuations, location-based pricing, and a review system to keep rates in sync with market fluctuations, according to a Times of India report.

A senior official said the A+ bracket has been suggested by stakeholders because several Lutyens’ Delhi localities, where real estate prices often far exceed even the highest notified rates, currently sit in Category A, which does not reflect their vastly higher market value. “The gap between notified rates and transaction values in these areas is among the widest in the city,” an official said.

Another major thrust of the upcoming revision will be farmhouses, especially in the urbanised belts of south Delhi, where properties routinely sell at extremely high prices, host commercial-scale events such as weddings, and function as luxury residences. “Many farmhouses continue to be valued at agricultural rates despite being part of urbanised Delhi.

Their circle rates barely vary from those in outer Delhi, creating a massive mismatch,” a senior official said.