The new revised ‘guidance value’ of properties will come into force from October 1, as per the declaration by Karnataka Revenue Minister Krishna Byre Gowda at Vikasa Soudha. As per the report, the guidance value will be increased by 25 to 30 percent on an average. The percentage of increment can go up till 50 percent, if it is densely surrounded by IT corridors depending on the areas. Gowda mentioned that, Bangalore will be the first to get revisions, followed by other districts in Karnataka.
Gowda also mentioned that according to the law the guidance value should be increased, but unfortunately the guidance value was not increased in last five years. He said that, the areas where the market value is 200 times higher than the guideline rate, there the value will increase by 25-30 percent.
He also added that few areas of electronic city in Bangalore, the market value is above 300-500 times or even more than the guidance value. The guidance value is the minimum selling price of a property fixed by the government which depends on the locality and type of the property. In the month of May, Bangalore government said they will increase the guidance value by 10-30 percent.
Guidance Value is also known as the circle rate in some states. If it is not updated after a fixed period of time, then it will lead to black money transactions.So, it is very important to take a bold step against it by revising guidance value. As the foundation stone of this essential step, from 1st October, onwards, the revised rate of guidance value will be implemented in Bangalore. After this, the sub committees in each district will discuss and decide and then the value will be implemented.
In the press conference, Gowda claimed that more than Rs.800 crore worth of property registrations have been done in September since last year, and the government is looking forward to collect more revenue through stamp and registration fees.
The last hike in guidance value was occurred in 2018-19 and it was increased by 25 percent. The authority also said that, if anyone has any objections regarding the revised value, he or she can submit report regrading this and the authority will surely pay heed to this and implement the new guidance value. Previously, while presenting the state’s budget for 2023–24, Karnataka CM Siddaramaiah proposed a revision of the guidance values of properties in the state.
Local brokers said that, in most of the prime locations, and central business district the difference between the guidance value and actual property prices is about 40-50 percent, and on the other hand in the outskirts it's about 30 percent. This bold step of Karnataka Government will definitely magnify and affect the price range of the real estate market widely.
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