PROPGUIDE − A Complete Property Guide

An Explainer: Circle Rate

Loading video...


Authorities determine the price of real estate in a particular locality on the basis of several factors. After taking these factors into account, they set a benchmark below which any real estate transaction cannot take place in a particular locality. This benchmark is called the circle rate.

A city’s various colonies are divided into categories on the basis of development, real estate demand and prices. These categories have specific circle rates for real estate transactions. Also known as ready reckoner rates and collector rates, circle rates are subject to periodic revision and can be tweaked depending on development and price growth in an area.

While a circle rate determines the threshold below which a transaction cannot take place, there is no cap above which a property cannot be sold. So, most real estate transactions in India take place on the market rate, or the prevalent property rate in a particular locality. However, the stamp duty and registration fees to be paid by the buyer are calculated on the transaction value, that is the market rate.

A wide difference between circle rate and market rate leads to loss of revenue for the government. People sometimes tend to undervalue their property to restrict stamp duty and registration payouts, and accept the balance amount off the record. This allows the flow of ‘black’ money into real estate. Higher circle rates, on the other hand, discourage buyers from registering their property.

By bringing the two rates closer to each other, authorities can bring in more transparency and also plug revenue leakages.

Tags: Stamp Duty, property registration, Connaught Place, Video, Circle Rate

With Circle Rate Hike, Property Prices In Ghaziabad Set To Shoot Up

Effective from April 1, the Uttar Pradesh Housing Board has hiked circle rates for sectors of Vasundhara by 16 per cent. The move is likely to raise property prices at a time when markets are already struggling with a slowdown.

April 12 2017

+ Click Here To Read This Article

Govt Bans Rs 500 and Rs 1,000 Notes; Move Will Cure Realty Of Many Ailments In Long Term

Rs 500 and Rs 1,000 were banned from November 8 midnight. What will be the impact on real estate and your property.

November 09 2016

+ Click Here To Read This Article

#RealtyNewsRoundup: Uttar Pradesh To Hike Stamp Duty, Circle Rates

Here are the top news stories from the real estate sector.

July 21 2016

+ Click Here To Read This Article

10 Areas Where Cutting Red Tape Will Make Realty Attractive

Long bureaucratic procedures have been a drag on India’s real estate sector.

July 18 2016

+ Click Here To Read This Article

Is NCR Losing Out To Mumbai, Bengaluru, Pune?

The National Capital Region, for very long, has been the largest residential real estate market in India. But, is NCR losing out to Mumbai, Bengaluru and Pune?

November 10 2015

+ Click Here To Read This Article

5 Creative Eco Resorts Around The World

If luxury housing are eco-friendly then what else could you want? It's like having your cake and eating it too!

May 04 2015

+ Click Here To Read This Article

#RealtyNewsRoundup: Real Estate Law Will Not Be Diluted: Yogi

Here are today's top news stories from the real estate sector.

April 28 2017

+ Click Here To Read This Article

#RealtyNewsRoundup: Affordable Homes To Get Stamp Duty Exemption

Here are today’s top news stories from the real estate sector.

March 07 2017

+ Click Here To Read This Article

Here are the top stories of the week from the real estate sector.

Here are today's top news stories from the real estate sector.

The Rapid Metro is the world’s first fully privately funded metro rail system developed by IL&FS...

After revisions in the draft rules of the Real Estate (Regulation & Development) Act, 2016,...

New projects, numerous options, and reputed developers, make these five localities ideal for...

If the demands of the Chief Minister Yogi Adityanath-led state government are met, the road for...

Here is a checklist of documents required for buying a property. While some of these documents have...

Though Bahadurgarh real estate market doesn't look bright yet, there are key drivers that can help...

A building code is a set of norms that govern construction of buildings by stipulating minimum...

PropGuide simplifies complex real estate jargons for you.

Proptiger has released it's quarterly review report on India's real estate sector. Ankur Dhawan,...

Prime lending rate is the interest rate at which banks lend to its most credit worthy...

Subscribe Now

To stay tuned with real estate updates


x +

Drop Your Query Here