A Ready Reckoner Rate (RRR) is the standard value of an immovable property assessed and regulated by the respective State Government in which the property is established. Here the word immovable property encompasses residential property, commercial property and land / plot.

It is a bid to ensure accurate valuation of real estate properties, all the state governments publish area -wise rates of properties on a yearly basis known as Ready Reckoner Rate (RRR). Also referred to as Circle Rate, a RRR differs across States, cities and localities. While RRR determines the minimum selling price of the property, there is no cap on the maximum property price or the market rate.

By definition, the market rate is a price that a buyer finally agrees to pay for a property based on amenities involved and the previous property transactions in a location. Most of the properties in India are sold at market rate, and since these rates are usually higher than RRR buyers end up paying more.

Overall, a RRR is a good indication of the price a home buyer has to pay in an area. Moreover, since the market rate is generally higher than RRR, it is recommended to invest in an area where the gap between the two is smaller because the increase in RRR would imply an increase in market rates. And a higher market rate would mean a higher property cost for buyers.

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