Bengaluru Realty: 20% hike proposed in guidance value

The enhancement is keeping in mind the variance between the market value and the existing guidance value.
Highlights: 
The highest enhancement in guidance value has been proposed in Jayanagar, Basavanagudi, MG Road and other areas that are already commercial or have the potential to become commercial.
The Department of Stamps and Registration has proposed a revision of 5-20% in various parts of the city.

The Department of Stamps and Registration has proposed an upward revision of up to 20% in the guidance value (government value) of properties in Bengaluru.

The preliminary notification of the proposed guidance value for the properties under the Basavanagudi, Gandhinagar, Jayanagar, Rajajinagar, Shivajinagar, Bengaluru Rural and Ramanagara district registrars have been uploaded online and objections can be filed within 15 days.

“We have proposed an enhancement of guidance value by 5-20%,” Inspector-General of Registration and Commissioner of Stamps K V Thrilok Chandra said. The guidance value was last revised in 2016. “The enhancement is keeping in mind the variance between the market value and the existing guidance value,” he added. 

Guidance value is the base price on which property transactions have to take place. Once increased, property buyers must pay more for stamp duty and registration fee. Deccan Herald had reported on 14 August that the government would increase the guidance value in September this year.

 

The highest enhancement in guidance value — over 20% — has been proposed in Jayanagar, Basavanagudi, MG Road and other areas that are already commercial or have the potential to become commercial, he said. “In the Jayanagar 4th T Block area, near the shopping complex, for example, the proposed per sqft rate is around Rs 15,000. Currently, it is fixed between Rs 5,000 and 10,000 per sqft, but the market value is much higher,” he said.

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Guidance value has been kept untouched in underdeveloped areas where commercial transactions are lower. “For example, we have not proposed guidance value enhancement in parts of old Bengaluru like Akkipet populated by low and middle-income families,” Chandra said.

Guidance value on agricultural land around Bengaluru has been increased by over 20%. “This is mainly in Hebbal, Nelamangala and Chikkaballapur where the difference between the actual transaction rate and the existing guidance value was between 200 and 300%,” Chandra explained.

The current guidance values, market rates, road connectivity, commercial activity in the area, jurisdictions of the rural and urban civic bodies, land conversion rates and the facets of immovable properties are being considered for the upward revision. 

How to calculate?

For example, if the current value fixed by the local body currently, of say an agricultural land in Basavanpura village is Rs 2.20 crore (guidance value Rs 22000 per sq mt), then an immovable property (agri-land) flanking the Peripheral Ring Road will cost Rs 3 crore. Price of gunta of land can also be derived similarly. 

The difference between the rates of the two properties --is Rs 3 crore minus Rs 2.20 crore equals Rs 80 lakh--which is a difference of 33.36 per cent. 

The proposed guidance value is likely to be in the vicinity of Rs 29,999 (which is Rs 22000 plus 33.36 per cent).

ALSO READ: Now, govt staff must declare present guidance value of their properties

PREVIOUS COVERAGE: Govt plans GIS-based guidance value system

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Bengaluru Realty: 20% hike proposed in guidance value

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