Guidance value for top floor flats shoots up

Villas classified as separate category; amenities to be charged additionally

Guidance value for top floor flats shoots up

The draft revision of market valuation of properties in Bangalore Urban released by department of Stamps and Registration indicates a spike in the guidance value rates for apartments and villas.

The new guidelines point towards additional rates which will be imposed not only on amenities offered in the apartment complexes, but also on high rise floors, after the fifth floor.

With a sharp increase proposed in guidance values, those planning to purchase villas will have to shell out more. The department has classified villas as a separate category while earlier they were valued on a par with other category of properties.

The amenities offered in apartments have been classified into 15 groups. If more than five groups are offered, then there is an additional one per cent increase on value of super built area with a maximum of 10 per cent for 15 or more amenities.

The value goes up by 0.5 percent incrementally for apartments located above fifth floor. In other words, a sixth-floor apartment would be valued at the rate of the superbuilt area plus 0.5 per cent, while a seventh floor apartment would be valued at super built area plus one per cent and so on.

Even the rate for groups of amenities is incremental. While six groups of amenities would attract one per cent additional cost, seven groups of amenities would draw two per cent additional cost. The increase of these rates is expected to push up the price of apartments by 12-16 per cent, while the cost of villas are expected to shoot up by 20 per cent.

In its zeal to mop up revenue, the department has decided to add eco-friendly initiatives like solar power solar water heater, green building concept and low carbon material usage and safety features such as fire fighting and fire prevention as amenities as well.
Even rates for car parking - both covered and open — have been specified.

For apartments costing Rs 50 lakh, covered car parking will cost Rs 1.50 lakh, while open parking will cost Rs 1.35 lakh. For apartments costing between Rs 50 lakh and Rs one crore, the cost will be Rs two lakh for covered and Rs 1.50 lakh for open. Apartments costing more than Rs one crore will cost Rs 2.50 lakh for covered, and Rs 1.50 lakh for open parking.

Builders and developers say the move is sure to have a negative impact on business, though they are not surprised by it. “This has always been an avenue for higher revenues, so it is not surprising that this segment is being targeted. We will have to find ways of managing this. We probably will no longer offer amenities as such, but will offer it separately. For example, the club house will be offered independently with a free membership,” the executive director of a realty group said.

While it definitely narrows down the margins being offered to customers, builders agree that is a business and ultimately the cost will be borne by the customer and not the developer.

However, builders are not really worried about the increase in prices for villas, as they cater to premium segment. “Those who opt to buy villas are the ones with deep pockets, so they are not expected to mind a slight increase in prices,” another realtor stated.
Builders are expected to meet the chief minister to see if there can be downward revision of prices with regard to amenities for apartments.

Facilities for a price

* Club house, community hall, amphitheatre, card room
* Jogging track, pebble path, walking track
* Play areas, landscape area, fountain
* ATM, Hopcoms, banks, provision store
* All kinds of outdoor and indoor playing areas
* Swimming pool, kids pool
* Cargo lift, elevators
* Surveillance of the common area, CCTV and intercom systems
* Wifi Internet parlour, video conference facility, solar water heater
* Helipad
* Health clinic, Ayurvedic parlour, Jacuzzi and Gym
* Nearness to Ring Road, Metro Station (about 3 km)
* Nearness to Airport, Railway Station, bus station (about 5 km)

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