Most property in residential areas have seen a rise in guidance value by about 30 per cent, and agricultural land seems to have benefitted from the revision.
The much-awaited revision of guidance value of property in Bangalore has been unveiled even as a record revenue collection has been reported by the Department of Stamps and Registrations in the first quarter of this financial year. The revision across the State, which has now been completed with Bangalore, is expected to bring about Rs. 800 crore more than the set target of Rs. 4,200 crore, to the State exchequer in 2011-2012.
While property on the outskirts, especially agriculture land in Bangalore North and East, have seen the maximum increase, the value of residential property in the city still remains much below the market value.
The last time that property values were revised was in April 2007. The value has been increased by an average of 30 per cent, and ranges from 10 per cent to 150 per cent. Most of the property in the residential areas have seen a modest rise by about 30 per cent, and agriculture land seems to have benefitted by the revision.
Considering the development in real estate taking place around the national highways, peripheral road to Bangalore International Airport and Outer Ring Road in Hebbal, K.R. Puram, Mahadevapura and other places, the revision has been on the higher side with one acre in Hebbal now being valued at Rs. 6 crore. The value of agriculture land in and around the city now ranges from Rs. 8 lakh in several interior villages to Rs. 6 crore. In many developing areas, the guidance value for agriculture land has doubled.
However, residential property in Jayanagar, Basavanagudi, Malleswaram, Koramangala, Rajajinagar, Vijayanagar and other places have only seen a moderate rise in guidance value — by about 25 to 40 per cent. Also, a wide variation between the guidance value and market value remains, and according to industry experts the variation could be between 30 per cent and cent per cent, depending on the area.
Similar is the case with the commercial hubs. Though the value for property on M.G. Road, K.G. Road, Commercial Street, Infantry Road, Indiranagar 100 ft. Road etc., have been revised, they are not in line with the prevailing market prices.
Property on Kempe Gowda Road have emerged as the costliest after the revision with the rate per sq. ft fixed at Rs. 13,000 as against Rs. 10,000 earlier. The value of residential property ranges now range from as low as Rs. 60 per sq. ft in the gram thana areas on the outskirts to Rs. 11,000 per sq. ft. in Upper Palace Orchards.
Separate rates have been notified for apartments based on the materials used for flooring: mosaic, ceramics, vitrified, marble and granite. Separate rates have been notified for BMRDA/ BDA/ converted/ gram thana properties.
The Inspector General of Registration and Commissioner of Stamps, B. Shivappa, said: “We will increase the guidance value of property in the city area progressively as this revision should be acceptable to the public also. In future the guidance value would be aligned with that of the market value.”
Interestingly, the department has also noted the characteristics of certain areas in the gazette, which could help property buyers. It has identified areas that are infested with mosquitoes; low-lying areas prone to flooding; stench emanating from open drains and poor sanitation; roads affected by traffic and also slums.
Meanwhile, the real estate sector seems to be showing good signs of revival with the first quarter revenue collection from stamp duty and registration fee showing 33.17 per cent growth over the corresponding period last year. The department has collected Rs. 1,112.85 crore in the period by registering 3.47 lakh documents as against the target of Rs. 892.50 crore. It had collected Rs. 835.49 crore by registering 2.80 lakh documents in the first quarter of 2010, missing its target by Rs. 67.51 crore.
The officials have acknowledged that the number of documents being registered has gone up, bringing in a substantial increase in revenue, and that it could be due to registration of high-value property.