Guide to circle rate and market rate

Before planning to buy a house or property, the buyers need to be aware of the circle rates and market rates. These rates will help you to assess the value of your property in the best possible way. These rates are revised from time to time and vary from state to state and area to area. Knowing what they are will help you make better decisions when quoting a price for your property and help you save your money.

What is Circle Rate?

Circle rate is the minimum value at which the sale or transfer of a plot, built-up house, apartment, or commercial property takes place. These rates are notified by the state government or the local development authorities.

Important points to know about circle rate

Here are some of the important points to keep in mind about the circle rate:

• Different localities within the same city have different circle rates
• These rates help to keep speculatory prices in check
• Circle rates are not the actual price of the property
• Circle rates are lower than the property’s actual market price
• Circle rates are indicative prices
• The buyer needs to register the property on the prescribed circle rate or actual transaction value, whichever is higher
• Real estate transactions cannot take place below the given circle rates
• The sales deed must be closer to the circle rate
  

What is Market Rate?

It is the price at which a property is sold. It is the final price that is decided between the seller and the buyer.

Important points to know about market rate

Here are some of the important points which you must know about the market rate:

• The market rate is arrived at by the demand and supply in the area
• They are based on the inclination of the buyer to pay and the price expectation of the seller
• Knowledge of the market rate helps buyers to know their buying capability
• The market rate is an indicator of the degree of appreciation of real estate prices in the given area