Registration of properties in Bangalore has dipped by about 10 per cent in the last three weeks after guidance value for properties was revised, according to an official estimate.
Though the dip has been attributed to a series of government holidays when the sub-registrar's offices are closed, sources in the Department of Stamps and Registrations said that the number of registrations had decreased as the the registration fee and stamp duty had increased after the revision of guidance value.
The revised guidance value came into effect on September 26, and the increase is in the range of 30 to 150 per cent. The guidance value was last revised in April 2007.
According to a source in the department, the decrease in the number of registrations could also be because of “Pitru Paksha”, a fortnight which is considered inauspicious, which ended with Mahalaya Amavasya on September 27.
“Also, as there were a number of government holidays during the period, we are yet to properly assess the impact of guidance value revision,” the source said and added that this dip in the number of registrations could also be due to the increase in budget for the buyers. Meanwhile, a valuation expert also acknowledged the decrease in the number of property registrations following the revision.
“While old agreements, especially for sale of apartments, are being registered, we are seeing a decrease in the number of new agreements being registered,” he said. Registration of individual properties had also plummeted, he added.
He expected this trend to continue for another two or three months, as property buyers will have to spend more on registration.
A senior official indicated that there could be another revision of guidance value in April 2012 for which the department had started the ground work. “The department has taken a stand to revise the guidance value annually from this year,” the official said. Among other things, the department will gauge the real estate market, including publicity material, to assess property prices. “The revision can be either upward or downward, depending on the market condition.”
Another official said that if the value of properties along the Namma Metro alignment appreciates, the next revision would consider the appreciation and the values be suitably revised.