WHAT IS A MARKET RATE?
Market rate is the price that a buyer pays for a property. Simply put, it is the final price decided based on the agreement between the buyer and the seller. Sunil Kapoor, executive director, Capri Global Capital, says, "Market rates are determined by the seller's expectation of price and the buyer's inclination to pay." It is a price range arrived at by looking at actual transaction prices in a location, and is a better indicator of what sellers demand and what buyers are willing to pay. As these prices are determined by demand and supply, an area with low supply but high demand will inevitably command higher prices when compared to other areas.