What is circle rate of property?

Thank you Ms. Punam for sharing your thoughts on what is circle rate. As she has rightly mentioned, circle rate is the minimum price below which no property is registered with the state revenue department. We have shared a video on our Youtube channel explaining the concept and meaning of circle rate in detail. You can check it out below.

If you are trying to enter the real estate market, then you must have heard about ‘circle rate.’ If you don’t know what it is, then don’t worry, I will explain what is circle rate of property in this answer.

The circle rate is the min. designated price at which property needs to be registered. The circle rate is used as a guidance value for keeping a check on speculation of the property/land prices as transactions can’t take place below these rates.

The govt. updates the circle rates regularly depending on supply, demand, and development of the area to determine the capital gains on the property for Income Tax Calculation and to assess stamp duty charges.

Now that you understand what is circle rate of land, let me tell you why circle rates vary within city

Circle rates vary from city to city within a state as well as from building to building, from project to project, and from area to area, based on the property’s location.,

For instance, if the property is in a good area with metro connectivity, then the circle rates of this property would be higher than the property in some other area with no metro connectivity.

Circle rates are usually higher in more desirable residential areas.

For instance, the circle rate for Gurgaon HUDA Sector 43 in Gurgaon is Rs. 50000 per square yard whereas the land of the same size will be available for Rs. 30000 per square yard at Sectors 106 and 105.

I hope now you know what is circle rate in property.

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