Delhi’s A+ Property Zone: How Circle Rate Reforms Could Transform Lutyens’ Delhi and Farmhouse Market
government is preparing to shake up the city’s property market. With plans to review circle rates the minimum property valuation used for taxation and registration Delhi might soon witness a brand-new A+ property category. This change could finally align government rates with real market values, especially in Lutyens’ Delhi and farmhouse zones.
Why the Circle Rate Revision Matters
Circle rates have not been revised since 2014. Over time, this gap has created a massive difference between circle rates and market prices. For example, in upscale colonies like Prithviraj Road or Amrita Shergil Marg, actual prices soar far beyond official values. Because of this mismatch, many deals often include partial cash payments, leading to lower transparency and reduced revenue for the government.
However, things are about to change. The Delhi government has received multiple suggestions to revise circle rates and introduce a new “A+” category for elite areas. If approved, these changes could modernize Delhi’s real estate valuation system and create a fairer, more transparent market.
Introducing the ‘A+’ Property Category
The proposed A+ zone aims to cover ultra-premium areas such as:
- Amrita Shergil Marg
- Prithviraj Road
- Dr. APJ Abdul Kalam Road
- Golf Links
- Jor Bagh
- Tughlaq Road
In these neighbourhoods, market prices often exceed ₹12–₹15 lakh per square metre, while the current circle rates lag far behind. Experts have recommended setting realistic A+ rates around ₹10 lakh per square metre, ensuring fair valuation and higher revenue collection.
This move could also boost investor confidence and attract high-value buyers who seek transparency and legitimacy in transactions.
Farmhouse Rates Get a Much-Needed Rethink
While Lutyens’ Delhi steals the spotlight, Delhi’s farmhouse market also faces major rate disparities. Farmhouses, once classified as rural assets, are now part of urbanised Delhi. Yet, their circle rates remain pegged to agricultural values, causing significant inconsistencies.
For instance, farmhouse rates currently range from ₹54 lakh to ₹30 crore per acre, depending on location but this wide gap doesn’t reflect actual market behaviour. Experts have suggested linking farmhouse rates to geographical zones and benchmarking them realistically. Doing so would improve transparency, reduce undervaluation, and help plug major revenue leakages for the government.
Biennial Reviews and Data Transparency
The new proposal also suggests biennial reviews of circle rates. This approach would keep valuations in sync with changing market trends. Additionally, experts recommend establishing a stakeholder committee that includes developers, buyers, and government representatives. The committee would ensure data transparency and minimize disputes over valuation.
By adopting these measures, Delhi can move toward a more dynamic and data-driven real estate ecosystem one that fosters trust and growth.
Expert Views: Aligning Market and Policy
Industry leaders are already applauding this initiative.
Amit Goyal, Managing Director of India Sotheby’s International Realty, noted that the revised rates would improve accuracy, transparency, and compliance in property registration. He believes that the creation of an A+ category would “modernize Delhi’s valuation framework and align it with current market realities.”
Echoing similar optimism, Anshuman Magazine, Chairman and CEO of CBRE India, stated that revising circle rates after a decade will boost investor confidence and encourage fair transactions.
Sanjeev Singh, MD of SKJ Landbase, Shares His Insights
According to Sanjeev Singh, Managing Director of SKJ Landbase, the proposed reforms are a timely and necessary step. He explains,
“Delhi’s property market has evolved rapidly, but official valuation metrics have remained stagnant. By revising circle rates and introducing an A+ category, the government will bridge the long-standing gap between recorded and real values. This shift will create a fairer marketplace, bring more investors into the formal system, and improve overall transparency.”
He further adds that regular reviews and digital data access will streamline property transactions, increase revenue, and boost investor trust in Delhi’s real estate sector.
What This Means for Buyers and Sellers
For homebuyers, revised circle rates mean clearer property valuations and fewer under-the-table transactions. It ensures that both parties deal transparently, protecting long-term investments. For sellers, fair circle rates can help unlock better value and make transactions smoother.
Moreover, with Delhi possibly becoming India’s first city to introduce an A+ category, it sets a strong precedent for other states to follow. Real estate in Delhi could soon reflect true value, benefiting buyers, developers, and the government alike.
Conclusion: A Step Toward a Transparent Future
Delhi’s proposed circle rate revision is not just a policy update it’s a strategic realignment of urban economics. By bringing fairness, clarity, and accuracy to property valuation, the government aims to redefine how Delhi’s real estate operates.
If implemented effectively, this reform could transform Delhi’s property market into one of the most transparent and investor-friendly ecosystems in India, starting with its most iconic address Lutyens’ Delhi.
