Revision of guidance value notified
The much-awaited revision of guidance value of properties across Bangalore has been notified, with property prices set to increase anywhere from 10 per cent to 100 per cent in the city.
The fresh guidelines will usher in a new system of valuation of apartments and gated communities to boost revenue collection.
The fresh guidance values (provisional), which are expected to come into force by mid-August, are notified seeking public response by the Department of Stamps and Registration. The last revision of the guidance value of properties in Bangalore was in September, 2011.
The revision is significant, as nearly 50 per cent of the department’s total revenue through registration fee (1 per cent) and stamp duty/surcharge/cess (6.65 to 6.75 per cent) comes from the city. While the department collected Rs. 5,265.44 crore during 2012–13, it has set a target of Rs. 6,500 crore for the current financial year.
“The Central Valuation Committee has looked at areas that witnessed high transactions, especially Bangalore north and Bangalore south-eastern areas, which have seen a high growth of apartments. We also used Geographical Indication System for the first time,” an official involved in the revision said. The official also pointed out that in several areas, the guidance value had been brought down as not many transactions had taken place, given that guidance value was higher than the market value of the property.
The lowest rise in the guidance value for properties has been in slum areas with about 10 per cent increase, while it is about 20 per cent in the central parts of the city.
Implications for villas
Under the new system, registration of villas and houses in gated communities has been included with the guidance value being fixed for the first time. The guidance value for such properties range from Rs. 500 per sq ft to Rs. 10,000 per sq ft in the eastern part of the city, especially near Mahadevapura, K.R. Puram, south-eastern parts around Sarjapur and Hosur Road, and northern parts, including the area around Yelahanka and Bellary Road.
In the latest revision, the guidance value for an acre in Kacharakanahalli is pegged at Rs. 9.9 crore while in Doddanakundi, Kundalahalli, Vishwanathanagenahali, Nagawara, Hennur and other areas that either abut the Outer Ring Road or the national highway, the value has been pegged between Rs. 6.5 crore and Rs. 7 crore.