NEW DELHI: The Rekha Gupta govt is working on a comprehensive revision of circle rates across all property categories, from A to H, marking the first structured recalibration in several years to align notified rates with prevailing market trends.While the hike in premium colonies is modest, sharper increases have been proposed in mid- and lower-segment areas where officials say market transactions significantly exceed existing circle rates, according to details of an internal govt report.Ultra-premium stretches like Prithviraj Road, Jor Bagh, Sundar Nagar are reportedly seeing market values in the range of at least Rs 18-22 lakh per sq metre as a reason there have been demands to introduce an A+ category for it.
However, the proposal has also reignited demands for re classification. Residents of New Friends Colony have submitted nearly 70 suggestions, including a collective petition by 121 residents seeking a downgrade from Category A to B. They argue that actual transactions have been 35-40% below the prevailing circle rate for the past five years, leading to reduced liquidity and stalled deals. Residents also point to congestion and civic challenges, noting the colony’s proximity to Taimoor Nagar, Bharat Nagar and Zakir Nagar, which fall under lower categories. Similar downgrade demands have been raised by residents of Kalindi Colony and Sukhdev Vihar, who have cited a 2022 valuation committee report recommending reclassification.Conversely, there are demands for upward revision. Property owners in Defence 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 surpass those of NFC.In Category B, the govt has proposed at least a 32% increase, revising the rate from Rs 2,45,520 to Rs 3,25,000 per sq metre. Officials said colonies such as Hauz Khas, Green Park, Punjabi Bagh and Safdarjung Enclave have witnessed 30-50% appreciation over circle rates due to redevelopment, builder floors and improved Metro connectivity.Officials said this is not the final report but the outcome could be in the same direction. Circle rates for properties were last revised in 2014. The rates in many high-end 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 localities have circle rates that are actually higher than their current market values, and these are expected to be rationalised downward.Category C colonies, including Janakpuri, Civil Lines, Vasant Kunj, Netaji Subhash Place, C R Park and Malviya Nagar, are proposed to see rates rise to at least Rs 2.2 lakh per sq metre, reflecting market transactions 40-60% above existing benchmarks.The proposed revision is steeper in Category D and E segments. Lower-income Categories F, G and H — covering areas such as Keshav Puram, Krishna Nagar, Laxmi Nagar, Bhalswa Dairy, Narela and Burari — will see increases ranging from 8-29%.Govt sources said the objective is to rationalise valuation, improve revenue collection and reduce the gap between notified and actual transaction values without disrupting market stability. The proposal is expected to be placed before the cabinet after a review of public suggestions. Officials said that exercise is being carried out by a committee constituted in June by CM Rekha Gupta.
