The government declared base rate that decides property registration cost and minimum sale price.
Definition of Guidance Value
Guidance Value, also called the Circle Rate, is the official minimum price at which a property can be registered in a given area. It is set by the state’s revenue department and used to calculate stamp duty and registration fees.
The rate changes across localities and depends on factors like infrastructure quality, road width, amenities, and land use. For buyers, it acts as a legal floor price, ensuring that transactions happen transparently and reflect real market worth.
Why It Matters
The hidden number behind every deal
- Defines the minimum price below which a sale cannot be registered
- Influences overall tax and registration cost
- Provides a benchmark for comparing market rates
- Prevents undervaluation and revenue loss to the government
Understanding the Guidance Value helps buyers budget more accurately and identify genuine market pricing.
How It Works
The system behind property valuation
- Each locality is assigned a value per square foot by the registration department
- Guidance Value is revised periodically based on market trends
- If the sale price is higher than the Guidance Value, stamp duty is calculated on the sale price
- If lower, duty is calculated on the Guidance Value itself
The figure ensures transparency between declared and actual property values.
How Brickfi Uses This
Aligning financial clarity with legal compliance
Brickfi captures the Guidance Value for every property within its Brick360 Report. The platform compares it with current market listings to flag overpricing or undervaluation.
This helps buyers understand the correct tax implications and plan stamp duty costs in advance.
Buyer Action
Smart use of the Guidance Value
- Check the Guidance Value before finalizing price
- Calculate total cost including registration and stamp duty
- Compare market price with Brickfi’s benchmark in the report
- Ensure registration follows the official rate declared by authorities
Related Terms
Market Value | Registration | Stamp Duty | Brick360 Report
Key Takeaway
The Guidance Value is more than a tax metric, it’s the foundation of a fair property transaction. It ensures transparency for buyers, compliance for developers, and stability for the real estate market.
Where Brickfi Comes In
Brickfi maps official Guidance Values across projects and regions, connecting government-declared rates with real-time market data. By merging compliance and clarity, Brickfi ensures every buyer pays the right price, no hidden premiums, no registration shocks, just verified value.
