NEW DELHI: Months after Chief Minister Rekha Gupta directed the revision of circle rates of properties across all categories in the city and formed a committee to study it, the government is likely to announce a comprehensive revision of the rates in the coming weeks.
Sources said the Delhi Cabinet may take the matter for final approval soon. Work is being done on a comprehensive revision of circle rates across all property categories, from A to H, marking the first structured recalibration in several years to align notified rates with prevailing market trends.
Since the last comprehensive revision was done long back in 2014, the government has initiated the move aiming to minimize the gap between notified circle rates and actual market rates in the capital. It has also taken into consideration that price rise has been witnessed in the majority of pockets whether authorized and unauthorized while the government’s rate is still unchanged.
It is believed that revision will help improve stamp duty collections, reduce cash components in deals and bring transparency to property transactions, while keeping market stability intact. Sources claimed that the government is aiming to revise circle rates by nearly 7% in ‘A’ category colonies or also termed as posh/premium colonies. The government may classify a few colonies as A+ category since they are like ultra premium areas.
As far as revision of rates in ‘B’ category colonies is concerned, the government may approve an increase of around 30%. Residents living in these areas believe that appreciation of 30-40% has been observed in the last few years due to development and improvement in connectivity. In ‘C’ category colonies, property transactions are taking place at over 50% above the notified rate, prompting a corresponding revision.
For ‘D’ category colonies, where properties are being sold 25–30% higher than the current rates, the government may approve a hike of around 25%.
In ‘E’ category colonies, circle rates may be revised by about 28–30% to align with prevailing market prices. Since market rates in ‘F’ category colonies are 30–40% higher than the notified rates, the government is likely to approve a 20–25% increase. In ‘G’ category colonies, the proposed revision may be around 10%, while ‘H’ category colonies could see a 20–25% hike.
Sources said that the government is currently reviewing public feedback of residents and stakeholders across categories and the proposal submitted may not be the final one. Once approved, it will become the major revision in property valuation in over a decade.