What is Circle Rate? And Its Important Points

The minimum price at which a real estate property can be transferred from one owner to another owner is called the circle rate. The circular rate is the lowest and minimum price at which a residential or commercial property like land, flat, or constructed house can be reserved for another. This rate is fixed by the state government. These circular rates vary across cities and regions. An area with facilities such as transport networks, markets, schools, and hospitals has a higher circularity ratio than a developing area. The market rate is the rate that buyers pay to sellers or developers when acquiring ownership of a property. It is the final price that is decided between the two parties, the buyer and the seller. Buyers should know the difference between the circular rate and the market rate before buying a property.Often the circular rate is lower than the market rate, and the two have a moderating effect on each other.