What is Circle Rate?
The circle rates are the minimum charges levied by the local authorities that is to be paid during the property registration. The charges are determined to account the varying market values of the properties of various localities within a city. The circle of rate of a locality is often measured as a parameter to judge the sucess of the concerned locality. As premium real estate hotspots levy higher circle rates than the underdeveloped localities. An individual interested in making a purchase should be aware of the current circle rates of the locality where the concerned property is located.
Factors which Determine the Circle Rates
There are various factors that are taken into account while determining the circle rates of a locality such as:
Property Usage
Commercial
Residential
Property Type
Flats
Plots
Apatments
Area of Property
The area of the property is a major determining factor in estimation of circle rates. The amount to be levied on circle rates are often categorized with regards to the total area of the property (in Sq. meters).
Age of the Property
The age of the property is also considered while determining the circle rates . Higher charges are levied on newer properties.
Market Value
The market value of the property is also accounted for when the authorities decide on the circle charges.
Formula To Calculate Circle Rate?
The circle rate varies from building to building with respect to exact location of the property. The following formulae is employed to calculate the circle rate of a real estate: Area of Plot in Square Meters * Circle rate of the locality
