If the soaring rents in the city of Bengaluru weren't enough, more pain seems to be in store for house hunters.?
Property prices in Bengaluru are set to go up from October 1, as the state government is planning an increase in guidance value by 20-30 percent, Revenue Minister Krishna Byre Gowda told reporters on September 19 (Tuesday).?
"The registration department should revise the guidance value every year as per law. However, the guidance values have not been revised for the last five years. On average, the increase will be 20-30 percent depending on the areas; it may go up as high as 50 percent in dense IT corridors," Gowda said, as per various media reports.
He added that in areas where the market rate is 200 times higher than the guideline rate, the revised rate has been increased by 20 percent to 25 percent. "Yet the market rate in the IT corridor¡¯s Electronic City area of Bangalore is almost 500 times higher than the guidance value," he said,?adding that Bengaluru will be the first to get revisions, followed by other districts in Karnataka.
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Guidance value is the minimum selling price of a property fixed by the state government, depending on the locality and type of structure.?It is also known as the circle rate in some states.
"Non-revision of guidance value has also indirectly allowed black money transactions. Therefore, the new guidance value will be implemented from October 1," Karnataka's Revenue Minister Gowda told reporters, PTI reported.
Speaking at the conference, Gowda also said 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 mopping up more revenue through stamp and registration fees.
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The last hike in guidance value, by 25 percent, was done five years ago in 2018-19.?Previously in July this year, while presenting the state¡¯s budget for 2023¨C24, Karnataka Chief Minister Siddaramaiah had proposed a revision of the guidance values of properties in the state.
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In most prime locations or central business district (CBD) areas, the difference between the guidance value and actual property prices is about 40-50 percent, while in the outskirts it's about 30 percent, as per local brokers.
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