A circle rate is the minimum rate for valuation of a plot, independent house, or a flat in a particular area or locality. Circle rate is the minimum value at which the sale or transfer of a plot, build up house, apartment or commercial property can take place. The circle rate differs for various categories of colonies. All the brokers or people interested to invest in property must know the circle rates of different areas because then it would be easy for them to decide which area they want to buy property in. The circle rates for the real estate properties in Delhi are decided by the state revenue ministry or the government authorities. The circle rate for sale and purchase of properties in a particular area are finalized considering the available infrastructure and other parameters. The increase in circle rates may result to rise in property prices. Circle rate is not the actual rate of a property but just a pointer to it. The properties in Delhi are usually registered at circle rates.