Circle Rates and Property Prices: All You Need to Know

The property prices in an area are affected by a number of factors. One such factor is the Circle Rate. Circle rates are determined by the revenue department or development authorities of the state government and are known by the name of ‘Ready Reckoner’ in Mumbai and ‘Guidance Values’ in Karnataka. It can be defined as the minimum price at which a residential or commercial property, plot or a built-up structure can be sold or transferred.Circle Rates and Property Prices: All You Need to KnowBasically, the circle rates are set to define the amount of stamp duty one has to pay to the government on a property transaction. When the government publishes the Circle Rates officially, it becomes the minimum floor price. This is considered as the minimum price because if the property is sold below the set reference rates the difference is seen as black money by the income tax department. Hence, neither the developers sell below this rate nor do the buyers purchase below it. [Read more…]