The city added nearly 1,500 new apartment complexes over the last two years that have now come up for registration for the first time, as per the notification of the revised guidance value for 2017-18. The city's growth is vertical and not horizontal any more.
Any residential complex with more than six flats is counted as an apartment.
An analysis of the data reveals that the Hebbal-KIA corridor in north Bengaluru has added the highest number of apartment complexes. The corridor covering Hebbal, Byatarayanapura and Yelahanka added 897 apartment complexes with Hebbal alone adding 649. But there is no data on the number of flats in these apartments.
While the Inspector General of Registration and Commissioner of Stamps (IGR&CS) had published a draft notification of guidance values for the city on March 13, it only has additions of apartments and layouts. Guidance value of older properties has remained unchanged owing to a dip in the number of transactions following demonetisation and drought.
Bhojya Naik, Deputy Inspector General of Registrations, Central Valuation Committee, said that the new apartments came up for registration in the last couple of years. “It is an annual exercise. But this year, its a comprehensive exercise. Earlier even though some of these apartments may have registered flat sales, they would have taken the guidance value of the nearby apartments,” he said adding that specific guidance values for these apartments would ensure better revenue collection.
Why Hebbal
Suresh Hari, secretary, CREDAI, Bengaluru, said that north Bengaluru off Ballari Road has been a high-growth corridor and this is reflected in the data that has now emerged.
Hebbal, with its proximity to the city and Outer Ring Road, has emerged as the nucleus of growth in the corridor. The guidance value for these apartments is in the range of ₹26,000 – ₹66,000 per sq mtr, catering to mid and high income groups. Mr. Hari said that the corridor still has untapped potential and several under-construction projects would come up for registration in the coming years.
Mahadevapura, which houses Whitefield and the city's IT corridor, added 263 apartments and East Bengaluru with nearly 120 new apartment complexes are the other areas bustling with development of real estate, the data reveals. J.P. Nagar and R.R. Nagar are also gathering pace.
Guidance value revision likely by October
While demonetisation and drought has forced the State government not to revise or hike guidance value of properties in the city, a revision is likely by October this year if the market picks up pace, officials said.
Bhojya Naik, Deputy Inspector General of Registrations, Central Valuation Committee, said that there is a fall of at least 20% in property transactions. “The realty market is just recovering. The government has decided to give some breathing space and decided not to revise the guidance value,” he said.
The fall in property transactions has resulted in a huge shortfall against the revenue target set for this fiscal.
Manoj Kumar Meena, Inspector General of Registration and Commissioner of Stamps (IGR&CS), told The Hindu that as against a revenue target of ₹9,100 crore, the department had collected ₹7,190 crore.
Guidance Value revision is an annual exercise
Last revision: April 1, 2016:
Hike was 10% - 25%
No hike in guidance value this year
Reason is fall in property transactions due to demonetisation and drought
Revenue target (2016-17): ₹9,100 crore
Revenue collected (2016-17): ₹7,190 crore
Last revision: April 1, 2016:
Hike was 10% - 25%
No hike in guidance value this year
Reason is fall in property transactions due to demonetisation and drought
Revenue target (2016-17): ₹9,100 crore
Hike was 10% - 25%
No hike in guidance value this year
Reason is fall in property transactions due to demonetisation and drought
No hike in guidance value this year
