Delhi Circle Rates Set for Major Revision After 12 Years: Premium Colonies See Modest Hikes, Mid-Segment Areas Face Sharp Increases
New Delhi, February 23, 2026: The Delhi government 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. The exercise aims to align notified rates with prevailing market trends and boost revenue collection.
The Need for Revision
Circle rates for properties were last revised in 2014. Over the past decade, a significant gap has emerged between notified rates and actual market transactions. In many high-end colonies, circle rates are substantially lower than market prices, resulting in large cash components in deals, artificially low property valuations on paper, and lower stamp duty collections. Conversely, some localities have circle rates higher than current market values, which are expected to be rationalized downward.
Proposed Rate Changes
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.
In Category B, the government has proposed at least a 32% increase, revising the rate from ₹2,45,520 to ₹3,25,000 per square metre. Officials noted that 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.
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 ₹2.2 lakh per square metre, reflecting market transactions 40-60% above existing benchmarks.
The proposed revision is even 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% to 29%.
Demand for A+ Category
Ultra-premium stretches like Prithviraj Road, Jor Bagh, and Sundar Nagar are reportedly seeing market values in the range of at least ₹18-22 lakh per square metre. This has led to demands for introducing an A+ category to better reflect the premium status of these localities.
Downgrade Demands
The proposal has reignited demands for reclassification from several colonies. 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.
Upgrade Demands
Conversely, 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. They argue that infrastructure and market rates in these areas surpass those of New Friends Colony.
Official Sources
Officials clarified that this is not the final report, but the outcome could be in the same direction. The exercise is being carried out by a committee constituted in June by Chief Minister Rekha Gupta. Government sources said the objective is to rationalize 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.