What is circle rate?

Circle rates are minimum rates for property registration transactions notified by the sub-registrar or registrar’s office. It is different for each place and varies according to the place. In this article we will be taking a look at the circle rates of Delhi.

Significance of circle rate

Circle rates are significant because they are used as a factor while determining the price for property values during a purchase or sale. Financial institutions also use it before they sanction a mortgage loan.

Residential Plots’ circle rates in Delhi

Circle rates for flats in Delhi

Factors affecting circle rate calculations

Circle rates in Delhi depends on the following factors :-

1. Available facilities
2. Market value of the area.
3. Presence of other amenities nearby.

Based on these variables, as described above, the areas are divided into eight groups, starting from A to H. While areas with the highest prices and posh facilities fall under category A, this decreases for the following categories, with the lowest-value areas falling under category H.

As for flats, the circle rates further differ depending on the builders, namely

1. Flats constructed by private builders.
2. DDA or society flats.

Assessment of property loan application or valuation during purchase and sale thus follows these considerations in determining the cost of the property to be mortgaged.

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