The Delhi government's plan to elevate the circle rate concerning agricultural land from Rs 5.3 million to a potential Rs 50 million per acre is poised to stimulate an upsurge in farmhouse valuations amidst robust post-Covid demand.

In its recent declaration, the Delhi government affirmed that the updated circle rates for agricultural land would be Rs 50 billion per acre in southern and New Delhi zones, and Rs 30 million per acre in the northern, western, north-western, and south-western regions.

"While the rate hike has been overdue, it does seem relatively high in certain areas. The government should reconsider this and engage in consultations with local farmers," remarked Harshvardhan Bansal, Director at Unity Group, and President of the Delhi chapter of the National Real Estate Development Council (NAREDCO).

For central and south-east Delhi, the novel rates have been established at Rs 25 million per acre, while they stand at Rs 22.5 million per acre in Shahdara, the eastern region, and the north-eastern zones.

Farmers have expressed dissent over the increase, asserting that the rationale behind it is not well-founded. They believe the government should have waited the unveiling of the new master plan for the capital before enacting such alterations.

"The prevailing market rates in the majority of Delhi still fall below the revised rates. Section 33 of the land reform act is still applicable to around 50 villages, which restricts farmers from selling part of their land, compelling them to vend the entire plot," conveyed Pardeep Dagar, secretary of the Delhi Dehat Vikas Munch, a collective representing rural villagers in Delhi.

Preceding this, uniform circle rates were applicable to agricultural lands across Delhi, but they have now been demarcated on a district basis. Furthermore, they have been categorised into Green Belt Villages, Urbanised Villages, and Rural Villages.

This proposition will now be submitted to the Lieutenant Governor (LG) for endorsement. In a tweet, Chief Minister Arvind Kejriwal expressed, "For quite some time, Delhi's farmers have been advocating for an escalation in the rates of their agricultural land. A few years back, we did revise them as well, but due to certain circumstances, their implementation was delayed. Today, I am pleased to convey to all Delhi farmers that your demand has been satisfied."