WHAT IS A CIRCLE RATE?
Circle rate is the minimum value at which the sale or transfer of a plot, built-up house, apartment or a commercial property can occur. This rate is set by the state government's revenue department or the local development authorities. Rohan Sharma, senior manager research & REIS, JLL India, says, "The circle rate is in line with what the state government officials perceive as prices at which property sale or transfer should be undertaken." Within a city, there can be different circle rates for different localities. Since the real estate market is opaque and does not offer an accurate price index, the purpose of setting the circle rates is to put a check on speculation of property prices.