After nearly two decades of stagnation, agricultural land valuations in Delhi are set for a major overhaul. The Delhi government is preparing to sharply revise circle rates for agricultural land—potentially raising them by as much as eight times in select locations—according to officials familiar with the draft proposal. If approved, the revision could significantly reshape land valuations across the Capital’s rural belt and bring official rates closer to prevailing market prices.
At present, Delhi's agricultural land is priced based on a single circle rate of ₹53 lakh per acre, which was last changed in 2008. Over that period, much of the city’s rural hinterland has been transformed to urban areas, and the actual deal values have been driven way above the notified rates due to better road connectivity, expanding residential zones, and growing infrastructure. However, the official valuation system has been kept on hold for 17 years, which, according to officials, is resulting in an increasing gap between the paperwork and the ground reality.
As per, Hindustan Times, the first piece of information communicated by the two officials familiar with the proposal is that depending on various factors such as closeness to the developed areas, access to the infrastructure, and the land use around, the new circle rate for agricultural land might be as high as ₹5 crore per acre in some locations. Moreover, the new structure envisages no uniform valuation for villages, in contrast to the present single rate.
“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,” an official said, adding that the aim is to introduce nuance into a system that currently treats vastly different areas as equal.
This step came after several months of talks between the income department and the representatives of farmers, the organisations of agriculture, and the other stakeholders. The officials mentioned that the talks were going on through October, and the proposals were welcome until October 15. The representatives of farmers in the course of these negotiations suggested the circle rates varying from ₹5 crore to ₹8 crore per acre, pointing to skyrocketing market prices, increasing input costs, and the growing urban spreading around the agricultural land.
Officials said agricultural land has been taken up separately from residential and commercial properties because of the unusually long gap since the last revision. While circle rates for residential, commercial, and industrial properties—last notified in 2014—are currently under examination by a committee, agricultural land has been prioritised to address immediate distortions in valuation.
“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.
Delhi is still not that far in terms of agricultural land compared to what people usually think. The revenue department estimates that more than 50,000 acres in over 200 villages are still being used for agriculture. These are the places that are included: Tigipur, Khampur, Hamidpur, Jhangola, Bankner, Bhorgarh, Lampur, Bakhtawarpur, Dariyapur Kalan, Najafgarh, Bijwasan, and Dhichau Kalan, to name a few.
Officials noted that the current valuation system masks sharp differences between villages located closer to urbanised zones and those farther away. Areas that still retain large, contiguous tracts of farmland are likely to see sharper increases over the base rate, while villages where agricultural land has already transitioned into residential or semi-urban use may witness comparatively lower revisions.
To ensure that future distortions do not re-emerge, the draft proposal also includes a provision for periodic upward revision of agricultural land circle rates at fixed intervals. This would prevent long gaps between updates and help keep notified rates aligned with market conditions. “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.
Changing the values of agricultural land is only one of the ways that the authorities intend to restructure property valuation in Delhi. By its order dated 28th October 2025, a committee has been constituted to look into the present circle rates for residential, commercial, and industrial properties. The members of the committee include officials 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.
The committee, as per its instructions, is dissecting the last five years of transaction data, market trends, variations happening in different districts, and also taking into consideration the opinions of people who have been invited for a talk. On the other hand, officials warned that changes in the case of residential and commercial properties might take a longer time as there is a need for more detailed data for each sub-category and changes in land-use patterns in different districts have to be taken into consideration.
The industry people have reacted positively to the step taken but at the same time, they pointed out the necessity of being realistic and maintaining parity between regions. Harsh Vardhan Bansal, President, NAREDCO Delhi, expressed his opinion that the multipliers that are applied to registration rates for commercial and industrial properties in the Capital are still considerably 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.
The draft proposal on agricultural land circle rates will be submitted to the competent authority for approval once it is finalised. Although officials didn't mention a timeframe for the rollout, they said that there might be some more talks before the changed rates are officially announced.
The change will, in all likelihood, be a major one. According to the revision, the valuation of agricultural land in the Capital will be radically altered—thus making rural transactions more transparent, as they have been long overdue, increasing the government's income through better revenue collection, and recognizing how Delhi's rural area has been basically urbanized over the last twenty years.
.png)