Impact of Circle rates

October 26th, 2010  |  Published in Real Estate

1 Control Mechanism: Circle rate is a mechanism to ensure some amount of parity between the actual and the market price and is generally based on actual transactional data

2 A good move: An increase in rates will help buyers get higher loans as banks and financial organizations disburse loans on the basis of sale deeds which take into account circle rates while gauging property prices.

3 Primary market not impacted: Primary market dealings are primarily all in white and the increase in circle rates is unlikely to have a direct impact on volumes and prices of transactions.

4 Where it is happening:  Gurgaon has seen an increase for the second time in seven months this year. At Ghaziabad rates went up by 10-20 per cent and Noida saw two hikes within a span of 12 months

5 Great disparity: To some extent, the circle rates in Ghaziabad/Noida/Gurgaon represent market rates. In Delhi, these rates are much lower than the market rates.


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