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  • Guide to Circle Rate and Market Rate

    Planning to buy a house or property? Find out the circle rate of your property to assess the value of your property in the best possible way. These are very important rates that every homebuyer should be aware of.

    These rates are revised from time to time and varies 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 money as well.

    What is Circle Rate?

    Circle rate is the lowest price, or minimum price, at which the sale or transfer of a residential or commercial property can be registered before being sold or transferred, whether it is a plot of land, an apartment, or a built-up house.

    Important Points to Know About Circle Rate

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

    • The price is decided by the state government or the development authorities
    • Different localities within the same city can have different circle rates
    • Circle rates help to keep speculatory prices in check
    • Circle rate is not the actual price of the property
    • Circle rates may be lower than the actual market price of the property
    • Circle rates are indicative prices
    • The buyer has to register the property on the prescribed circle rate or actual transaction value, whichever is the higher amount
    • Real estate transactions cannot take place below the given circle rates
    • The sales deed should be closer to the circle rate

    What is Market Rate?

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

    Important Points to Know About Market Rate

    Here are the important points to know about the market rate:

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

    Why it is important to know the circle rate and the market rate

    It is important to know the circle rate and market rate because it helps to understand the right price of a property. Since home loans are provided based on the sales deed, it is helpful if there is a smaller gap between the circle rate and the market rate. So, next time you’re planning to buy a plot or home, make sure that you know the circle rate of your area. That way, assessing the value of your property will be much easier.

    Find Circle Rate List Based on City

    City Official Site
    New Delhi eval.delhigovt.nic.in
    Kanpur igrsup.gov.in
    Noida gbnagar.nic.in
    Lucknow igrsup.gov.in
    Faridabad faridabad.nic.in
    Gurgaon gurugram.gov.in
    Agra igrsup.gov.in
    Dehradun dehradun.nic.in

    FAQs on Guide to Circle Rate and Market Rate

    1. What is circle rate and agreement rate?

      The circle rate is the lumpsum price which is decided by the government on the basis of the current market value of the area which holds the property. On the other hand, the agreement rate is a rate on which the sale is after the agreement is made between buyer and seller.

    2. What is a ready reckoner?

      The circle rate is known as the ready reckoner rate. It is basically a lumpsum price under which a property should be registered when being sold or transferred.

    3. How is the ready reckoner rate calculated?

      The revenue department of state government or local development authorities calculate the ready reckoner rate. This rate is calculated after taking into consideration the market value and the facilities present in the particular area.

    4. How to calculate the property value?

      There are various ways through which you can calculate the property value. Some of the ways can be using online valuation tools, hiring a professional appraiser, evaluation of comparable properties, and getting a comparative market analysis.

    5. Can I take a home loan with a fixed interest rate?

      Home loans are available at fixed or floating interest rates.


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