Delhi Property Prices Set to Rise! CM Rekha Gupta Orders Circle Rate Revision

Delhi Chief Minister Rekha Gupta on Saturday, June 14 announced her decision to reassess the capital’s official circle rates owing to the disparity between rates and ground realities. This reassessment is expected to appear as a rise in property prices in Delhi NCR.

The move is supposed to bring the government-determined benchmark prices in sync with current market realities, as per media reports.

The announcement came after a high-level meeting on Saturday, where the Chief Minister spoke about the growing disparity between outdated circle rates and soaring market prices. The existing system no longer is indicative of ground realities, said an official statement from the CM’s office, as per the reports.

To execute the revision, the government has set up a committee chaired by the divisional commissioner. This panel will assess the prevailing property prices and submit its recommendations, forming the basis for the updated rates. Gupta also talked about the need for streamlining construction-related clearances, calling for more transparency and efficiency in the system to prevent bureaucratic delays, reports added.

A circle rate refers to the minimum value at which a property can be legally registered. It varies by locality and is influenced by factors such as demand, infrastructure, and the area’s overall profile. In Delhi, properties are classified from Category ‘A’ to ‘H’, with affluent areas like Vasant Vihar and Jorbagh at the top and underdeveloped zones, mostly in Outer Delhi, at the bottom, the report added.

The capital’s circle rates were last significantly revised during the pandemic when the government slashed them by 20 per cent to boost market activity. For instance, rates in Category ‘A’ areas dropped from Rs 7.7 lakh to Rs 6.2 lakh per square metre, while Category ‘H’ areas saw a reduction from Rs 23,280 to Rs 18,624. These concessions were rolled back in 2022, reverting to guidelines issued in 2014, as per the report.

Currently, the construction base cost in Category ‘A’ areas stands at Rs 21,960 per square metre. In Category ‘H’, it is Rs 3,480. A revised rate structure will likely push these numbers higher, a change that would impact not just buyers and sellers, but also government revenues through stamp duties and registrations, as per the report.