In recent past many cities including Noida, Gurgaon and Ghaziabad saw changes in circle rates. One of the objects behind cutting down circle rates was to reduce property prices and to encourage the buyers and investors of invest in real estate market.
Cut in circle rates came as a good move in the stagnant market. Real estate developers also appreciated the move as it helped them get some business. Property sites in India have also seen increase in the traffic from the people looking for new homes. To know who property demand is increasing due to change in circle rates, let’s check its impact on the market.
In June last year, Ghaziabad saw correction of around 4 to 5 percent in circle rates on residential plots. It tremendously affected the real estate market in the city. A spokesperson of Raheja Developers said on this topic, “This is one of the appreciated course of actions by the local body to cut the circle rate which will lead to correction in property prices. It has been noticed that in some areas of NCR circuit, circle rates are higher than the market rates of land. So this has to be justified accordingly also to boost the realty market.”
Not just the developers, property consultants and agents also appreciated the decision of cut in circle rates. After the move, real estate websites in India are expecting some positive movement in the realty market. At least, people looking for affordable homes will start searching their dream homes to avail the benefit of reduced prices.
This will help the homebuyers save money on stamp duty as they will now have to pay less for getting their property registered. It is completely a win-win situation for the government, builders, investors, agents and end-users.
When talking about circle rates, some people mistakenly consider it market rate. Let’s have a look at both of them and the difference between them.
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It is the minimum cost at which independent homes, commercial buildings, residential apartments and plots are sold and purchased. Local state government’s revenue department decides the rates.
This is the value of the property decided by the buyers and sellers. Generally, the existing market dynamics of demand and supply affect the final property price. However, some best real estate websites in India show both circle rates and market rates of projects.
Now when you have understood circle rates and market rates, make sure next time when you buy a house, you pay attention to them and grab the best deal.