CIRCLE RATE
- February 6, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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CIRCLE RATE
Subject : Economy
Context : Delhi government decided to reduce circle rates in the capital by 20% for residential, commercial, industrial and other properties across all categories for the next six months.
Concept :
- Circle rate is the minimum rate for Government valuation of a plot, independent house, or flat in a particular area or locality.
- The circle rates are decided by the State Revenue Ministry.
- The circle rates for sale and purchase of properties in a particular area are finalized considering the available infrastructure and other parameters.
The significance of Circle Rates is as follows:
- Higher circle rates means higher revenue for Government on property transactions
- Higher circle rates means lesser problems in raising higher home loans, as banks or mortgagers typically use circle rates as a gauge of the property prices in almost all places.