Delhi to see up to eight-fold hike in agricultural land circle rates

The circle rate for agricultural land could rise to as much as ₹5 crore per acre in select locations

The Delhi government is preparing to revise circle rates for agricultural land for the first time in 17 years, with draft proposals indicating an increase of up to eight times over existing rates, officials aware of the matter said on Tuesday. If cleared, the move could significantly alter land valuations across the Capital’s rural belt.

(Representative image) The draft proposal does not envisage a uniform rate across all villages. Instead, circle rates are likely to vary based on location, surrounding development and prevailing land use. (HT Archive)

According to two officials familiar with the proposal, the circle rate for agricultural land could rise to as much as ₹5 crore per acre in select locations, compared with the current uniform rate of ₹53 lakh per acre.

The existing rates were last revised in 2008. Although the government announced an increase in 2023, it could not be implemented due to administrative and procedural hurdles, leaving agricultural land values frozen for nearly two decades despite rapid urbanisation.

The move follows a series of meetings held over the past two months between the revenue department and farmers’ representatives, agricultural organisations and other stakeholders. Officials said the exercise is part of a broader review of property valuation norms in Delhi, but agricultural land has been taken up separately because of the unusually long gap since the last revision.

“Unlike residential and commercial properties, where revised circle rates are still under examination by a committee, agricultural land has been prioritised. There is a huge mismatch between actual transaction values and the notified circle rate. Land is being sold at much higher prices, but stamp duty is being paid on ₹53 lakh per acre, which means the government is losing revenue,” a senior revenue official said.

The draft proposal does not envisage a uniform rate across all villages. Instead, circle rates are likely to vary based on location, surrounding development and prevailing land use.

Officials said areas that still retain large, contiguous tracts of farmland could see sharper increases over the base rate, while villages where agricultural land has largely transitioned into residential or semi-urban use may witness a relatively lower degree of change.

As per estimates of the revenue department, more than 50,000 acres of land across over 200 villages in Delhi remain under agricultural use. These include villages such as Tigipur, Khampur, Hamidpur, Jhangola, Bankner, Bhorgarh, Lampur, Bakhtawarpur, Dariyapur Kalan, Najafgarh, Bijwasan and Dhichau Kalan, among others.

Officials said this blanket valuation has led to widespread undervaluation, masking sharp differences in land prices between villages on the city’s periphery and those closer to urbanised zones.

Consultations with farmers were held in October, following which stakeholders were invited to submit suggestions until October 15. During these discussions, farmers’ representatives proposed circle rates ranging from ₹5 crore to ₹8 crore per acre, depending on proximity to developed areas, road connectivity and surrounding infrastructure. Officials said the revenue department has also studied agricultural land circle rates in neighbouring states to develop a comparative framework.

The revision of agricultural land values is linked to a larger exercise to overhaul property valuation norms in Delhi. A committee constituted under an order dated October 28, 2025, has been tasked with examining existing circle rates notified in 2014 for residential, commercial and industrial properties. The panel includes representatives from the Municipal Corporation of Delhi, New Delhi Municipal Council, Delhi Development Authority, Public Works Department, Delhi State Industrial and Infrastructure Development Corporation and the Land and Building department.

As part of its mandate, the committee is analysing transaction data from the past five years, market trends, location-wise variations and inputs received through online and offline public consultations. However, officials said revisions to residential and commercial circle rates are likely to take longer, as the committee is still evaluating sub-category-wise and district-wise data.

For agricultural land, the proposal also includes a provision for periodic upward revision at fixed intervals, instead of allowing long gaps between updates. “The idea is to ensure that circle rates remain closer to prevailing market values and reduce disputes and discrepancies during property registration,” the official said.

Once finalised, the proposal will be placed before the competent authority for approval. Officials did not specify a timeline for implementation but said further consultations could be held before the revised rates are formally notified.

Harsh Vardhan Bansal, president, NAREDCO Delhi, said the multipliers applied to registration rates for commercial and industrial properties — two times and three times, respectively — are significantly higher than those in neighbouring states. “As NAREDCO, we are trying to present a realistic picture where these rates are aligned with prevailing market prices, so that more investors are encouraged to come to Delhi, particularly in industrial and commercial zones. At present, the rates are not favourable and do not reflect market realities,” he said.