All about New Delhi circle rates

In order to keep a check on price speculations, the state government decides the circle rates in the city for different localities. These are the minimum property prices at which the sale of a property can take place. The circle rates in New Delhi are decided by the Delhi government. Usually, the New Delhi circle rates are reviewed annually, to keep them in line with the market rates.

However, in a recent announcement, on February 5, 2021, the chief minister Arvind Kejriwal-led government in Delhi has decided to cut circle rates by a flat 20% across categories, including residential, commercial and industrial buildings. The reduced rates, which will be applicable on all areas in the national capital, will remain in effect till September 30, 2021. The decision was taken in a cabinet meeting of the union territory government on February 5, 2021.

Earlier, finance minister Nirmala Sitharaman, in the Union Budget 2021-22, had allowed home buyers to buy homes at 20% lower value than the circle rates, without attracting additional tax liability. This new norm will be applicable to properties priced below Rs 2 crores, till June 30, 2021.

Home buyers and investors should know that the property registration process in Delhi and charges such as stamp duty, are based on the higher of the declared property value and the price calculated as per circle rate applicable for the sector or area of Delhi.

How to calculate circle rates in Delhi?

Usually, commercial properties have higher circle rates, as compared to residential properties. It may also vary, based on the type and age of the property. Properties built after the year 2000 have a maximum multiplier of 1 while the older buildings have it in the range of 0.5-0.9.

You can calculate the circle rates in Delhi by visiting the

Alternatively, you can follow the below steps to calculate the circle rate in Delhi.

Step 1: Determine whether the property is used for residential or commercial purpose.

Step 2: Consider the type of property – whether it is a flat, apartment, independent house, or a plot of land. The circle rates of different property types vary, even if they fall in the same area.

Step 3: Factor in the ‘age multiplier’ to arrive at property valuation and determine the circle rate accordingly.

How to calculate property value in Delhi using circle rate?

Here is how to calculate the property value, using the circle rate:

1. Ascertain the property’s built-up area, plot area, age of construction, amenities, floors, etc.
2. Choose the type of property (residential or commercial unit, plot, house, apartment, builder floor, or shop).
3. Select the locality of the property
4. Calculate the minimum assessment figure as per the circle rates given

The formula for calculating the property value is as given below:

Property value = Built-up area (in sq metres) x circle rate for the locality (in Rs per sq metre).

Circle rates – age factor in New Delhi

Circle rates for flats in New Delhi

Circle rates for residential and commercial plots in New Delhi

To ease the process and keep it uniform across the city, the Delhi government has divided the properties in Delhi into eight categories – A to H. Delhi’s most expensive posh areas are in Category A while Category H has the lowest-value areas of the city.

Circle rates for agricultural land in New Delhi

In December 2019, the Delhi government announced a 10-fold hike in circle rates for agricultural land in Delhi. The circle rate for agricultural land has been increased from Rs 53 lakhs per acre to Rs 2.25-5 crores per acre, depending upon the area.

List of colonies in Delhi by category

See also: Circle rates in Gurgaon

Circle rates of land in Delhi colonies

What does circle rate in Delhi depend upon?

The circle rates in Delhi depend on a number of factors, such as:

• Facilities in the area.
• Market value of the locality.
• Category type of the region in the city in which the property is located in.
• Type of property: residential or commercial property (circle rates are lower for residential properties).
• Age multiplier for constructed properties.

What are registry charges in Delhi

Latest updates on Delhi circle rates

Circle rate cut in Delhi should be extended, say industry experts

A number of industry experts have opined that the Delhi government should extend the benefit of a 20% reduction in the circle rates beyond September, in view of the second wave of the COVID-19 pandemic. India Sotheby’s International Realty’s chief executive officer Amit Goyal said that registrations of properties had been hampered in the national capital due to the lockdown and almost two months lost, because of the severe second wave of the pandemic. Similarly, Sunil Tyagi, the managing partner of  Zeus Law, said: “It is desirable and expected that the Delhi government extends the time for availing of the benefit of reduced circle rates till the pandemic situation continues.”

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