Delhi Government Plans Circle Rate Revision to Match Market Prices
The Delhi government has proposed a major revision of circle rates to align them with the prevailing market prices of properties across the capital. A public notice has been issued, inviting feedback and suggestions from Resident Welfare Associations (RWAs), property owners, industry bodies, and stakeholders within 15 days. Circle rates are the minimum property valuation benchmarks set by the government, primarily used for registration and taxation purposes.
The objective behind this revision is to bridge the gap between government-notified rates and actual market prices, ensuring transparency in property transactions. Higher circle rates will also help boost state revenue by reducing the scope for undervaluation in property deals. The move is expected to significantly impact premium localities where the difference between existing circle rates and market values is substantial.
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Currently, Delhi properties are categorized into eight segments, from Category A to Category H. Category A includes elite neighborhoods such as Golf Links, Jor Bagh, and Vasant Vihar, where property values are among the highest. On the other hand, Category H covers rural and village areas with the lowest circle rates. The proposed revision will affect all categories, reshaping property valuations across the city.
Similar steps have been taken in other states as well. Recently, the Maharashtra government announced a 4.39% increase in ready reckoner rates for FY 2026, effective April 1. Ready reckoner rates, also referred to as circle rates, determine the minimum value for property transactions and form the basis for stamp duty and registration fees. This revision has already led to higher transaction costs for property buyers in Maharashtra.
With Delhi likely to follow suit, property buyers and investors must prepare for higher valuations, increased stamp duty, and potential changes in property affordability. However, aligning circle rates with actual market values will create a more transparent and credible real estate environment, discouraging tax evasion and undervaluation practices. The move is set to influence both the luxury housing market and affordable segments in the national capital.
