Summary of this article
Circle rates are the minimum valuation at which properties can be registered for taxation purposes.
Circle rate revision is conducted by the revenue department of the state government.
This shift may stabilise price volatility.
Delhi's property market is preparing for a major shift as the government prepares to revise the circle rates in the national capital. Circle rates are the minimum valuation at which properties can be registered for taxation purposes. Notably, the circle rate revision is conducted by the revenue department of the government in the National Capital Territory, Delhi (NCT).
This move has been in discussions for months, driven by the need to align the official numbers with the soaring market prices. As per a report by Anarock titled "Q3 2025 – PAN India Residential Market Viewpoints", the average housing prices in Delhi-NCR witnessed 24 per cent year-on-year jump in the third quarter of FY26. Several localities have witnessed price jumps from what they were actually valued at.
The gap between circle rates and actual transactions has grown severely. According to prop-tech platform Ghar.tv ,market prices in prime areas such as Golf Links, Sunder Nagar, Lodi Road, Vasant Vihar, Friends Colony, Kalindi Colony, Maharani Bagh, Nehru Place, Panchshila Park, New Friends Colony, Anand Niketan and Bhikaji Cama Place often exceed circle rates by 50-70 per cent. This translates into a significantly higher selling price of nearly Rs 11-12 lakh per sqm even if the official circle rate is Rs 7.74 lakh.
While the Delhi government has not announced an official date for the revision it is inevitable now, and stakeholders are preparing for the ripple effect on prices that will follow soon after it is proposed. Circle rates in Delhi were last updated in the year 2014, and since then the city has paced out these digits dramatically. A revision in rates is an attempt to narrow this gap, increase transparency and improve the government's revenue from stamp duty and registration fees. The biggest change will be witnessed in high-demand neighbourhoods where this disparity is the steepest.
For homebuyers, this impact will depend on timing and which segment they are purchasing in. People who are planning to invest in prime locations may face higher upfront costs once these rates are implemented. This change may push people to accelerate their purchases before these changes are implemented or rethink their budgets and locations entirely. On the other hand buyers who are seeking properties in peripheral or redevelopment zones might see developed and balanced adjustments.
Bhupindra Singh, COO, RISE Infraventures, states, "For potential home-buyers trying to time their entry, the revision shouldn’t be a cause for worry; in fact, clarity often leads to healthier negotiations. In micro-markets where rate gaps are moderate, patience could pay off. The updated circle-rate framework is expected to reduce ambiguity, strengthen transparency, and ultimately make the decision-making process less complicated."
Interested resellers will also face a mix of outcomes; while a higher circle rate will reduce the scope of undervaluation and black money-related activities in the market and potentially improve transparency, it may also reduce negotiation flexibility. This shift may also stabilise price volatility.
What Are The Key Proposed Changes:
The window to send in feedback regarding the circle rate revision was opened in October. Based on the feedback received, these are the key changes which are likely to be a part of the circle rate revision:
New category: A new 'A+ Category' is likely to be introduced. This category is suggested for ultra-premium areas, like Lutyens' Delhi.
New Valuations For Farmhouses: Rates for farmhouses will be revised to align with their actual market value and location.
Location-Based Pricing: This system will likely be revised to include more location-specific rates within existing categories.
Increase in Categories: The current categories are divided into eight sections; this could expand to as many as 24 to provide a more precise classification. The present 8 categories are based on prices and locations. Category A is the highest priced area of Delhi with Rs 43,000 per sq m, followed by Category B at Rs 34,100 per sq m and Category C priced at Rs 27,300 per sq m.
This revision of circle rates in Delhi is a significant step towards neutralising the national capital's property segment. While the transition may be challenging at first, the long-term benefits lie in transparency, accurate valuation, and improved revenue flows.
