Agro land rates may go up

Developed property in City to cost below market prices

However, the proposed hike in the developed property in the upmarket areas continues to be far below the existing market value. In a preliminary notification dated July 13, the State Stamps and Registration Department has proposed an upward revision of 10 to 100 per cent in the property guidance value in Bangalore Urban district.

The value of agriculture land in the high-growth corridor of airport road (Bellary Road) and the IT-concentrated south Bangalore areas has been proposed to be increased by 100 per cent.  Besides, agriculture plots along the Bangalore-Mysore road, too, have become hot properties.

An acre of agriculture land in Sarakki village at Bommanahalli costs a whopping Rs 4 crore (present rate is Rs 3 crore), while it is Rs 3.50 crore (present rate is Rs 2.50 crore) in villages near Yelahanka new town (off Bellary road) and Rajarajeshwarinagar (off the Bangalore-Mysore road).

The real estate sector, which had suffered due to economic downturn, has picked up in the last few months. Agriculture plots are the most-sought-after assets by the developers in Bangalore. By increasing the guidance value, the government wants to generate more revenue, official sources said.

Bangalore Urban district alone generates nearly 65 per cent of revenue from the stamps and registration to the government. Property guidance value (which acts as a guideline to the individual property seller or buyer and realtors for fixing prices on properties) in Bangalore was last revised in April 2007. However, the guidance value that the department has proposed in the well-developed localities of the city does not match with the market value.

 For instance, the market value of an apartment at Koramangala is around Rs 5,000 to Rs 7,000 per sq ft. But the department has proposed to fix it at Rs 4,280 per sq ft.

Similarly, a sq ft of apartment at Jayanagar costs not less than Rs 6,000, but it has been proposed to increase to Rs 4,130 per sq ft. The department has planned to increase the land value on M G Road by Rs 1,000 per sq ft from Rs 8,000 per sq ft. The highest value for a piece of land has been set for Kempe Gowda Road with Rs 13,000 per sq ft (while the present value is Rs 10,000 per sq ft).

In the apartment segments, different rates have been proposed to be fixed based on the construction materials used. The guidance value will be marginally higher for those which will have marble or granite flooring compared to mosaic and ceramic flooring.