Delhi Government Urged to Create Ultra-Premium 'A+' Property Category for Elite Neighborhoods

Real estate experts have advised the Delhi government to introduce a new 'A+' category for ultra-premium areas such as Prithviraj Road, Golf Links, Amrita Shergil Marg, and Jor Bagh amid ongoing circle rate revisions. According to industry sources, open market transactions in these elite neighborhoods have reportedly crossed ₹12–15 lakh per square meter, significantly outpacing official valuations.

Bridging the Gap Between Market Reality and Official Valuations

Sources indicated that experts believe the current Category A circle rates—capped at around ₹7.5 lakh per square meter—fail to reflect actual market conditions in these elite enclaves. The recommended rate for the proposed 'A+' category stands at around ₹10 lakh per square meter. The move is being seen as a way to modernize the city's outdated valuation system and improve revenue collection, particularly in Delhi's high-value property markets.

Farmhouse Belt Taxation Under Scrutiny

The proposal also covers Delhi's farmhouse belts, which continue to be taxed at agricultural land rates despite their urban character. Areas like Westend Greens, Vasant Kunj, DLF Chhatarpur, and Pushpanjali were cited as examples where land prices have touched ₹30 crore per acre, while official circle rates remain around ₹50,000–75,000 per square meter. This disparity has drawn attention to the need for comprehensive reforms in luxury farmhouse property valuations.

Key Recommendations from Industry Stakeholders

Industry stakeholders have further proposed several measures to ensure accurate and transparent property valuations:

• Zoning farmhouses geographically to better reflect actual market rates
• Dynamic, biennial circle rate revisions based on market indices like NHB RESIDEX
• A stakeholder committee including RWAs, valuers, and government officials to validate data
• GIS-linked online publication of circle rates for transparency

Market Impact and Revenue Implications

While some areas in South Delhi still see transactions below existing circle rates, many prime zones now far exceed official valuations. Observers believe a rationalized structure across Categories A to H, including a new A+ tier, would bridge this gap and bring valuations closer to real-world prices, improving investor confidence and boosting government revenue. This aligns with broader trends in Delhi-NCR real estate investment strategies.

Industry Support for Rate Adjustments

Real estate investors and fund managers have backed the move, with some suggesting 20–50% hikes in rates depending on locality. There is consensus that such an overhaul could lead to more equitable taxation and greater transparency in property transactions across Delhi. The proposed reforms are expected to particularly benefit investors looking at premium villa properties in Delhi-NCR and those exploring commercial property investments in the capital region.

The recommendations come at a time when Delhi's luxury property market continues to witness robust demand, with high-net-worth individuals and institutional investors showing increased interest in ultra-premium residential and farmhouse properties. Proper circle rate revisions could provide better price discovery mechanisms and protect both buyers and the government's revenue interests.

Disclaimer: This news article is based on information available from public sources and industry reports. Readers are advised to verify details independently and consult with authorized property valuation experts and legal advisors before making any real estate investment decisions. Circle rates and property valuations are subject to official government notifications and may vary based on location and property characteristics.