In some pockets of Bangalore, the guidance value is more than the market value
Real-estate industry has been demanding downward revision
BANGALORE: The much-awaited revision of guidance value of properties in Bangalore will take place shortly. To plug certain existing loopholes, the Government will revise the guidance value of properties both in Bangalore Urban and in Bangalore Rural areas before the end of this calendar year.
The last revision of the guidance value was in 2007 and technically the value has to be revised annually, the Inspector-General of Registration and Commissioner of Stamps S.N. Jayaram told presspersons here on Friday.
Similarly such revision would take place in other areas also and the value had been revised in 18 districts already, he added.
While the guidance value for properties in Bangalore went up by 200 to 300 per cent during the last revision, there had been a demand by the recession-hit real-estate industry for a downward revision to boost the demand.
Boom period value
“It was all right to have the present value during the boom period. Some corrections have to be made in these values now,” he said and added that the revision could either be an increase or decrease in the guidance value depending on their locations. For example, in some areas the values have already saturated while in other areas guidance value was higher than the market value. These anomalies have to be corrected,” Mr. Jayaram said.
Pointing out that pockets in Kanakapura and Doddaballapura, near Bangalore, guidance value was higher than the market value.
“The revenue collection target for this year pegged at Rs. 3,500 crore could still be reached with the revision.”
Meanwhile, he said that there were indications that the economic downturn was over and that the property registration figures for April had been encouraging. “As against the collection of Rs. 166 crore as stamp duty in April 2009, the department has collected Rs. 271 crore in April 2010,” he said and added that the was expecting the momentum to go up in a big way.
The increased revenue, he said, was due to the Telangana crisis which had driven investments to Bangalore from Hyderabad.
Earlier, launching the e-stamping facility at SyndicateBank here, he said the department hoped to increase the e-stamping centres from 129 at present to 300 by the end of this year, which would be scaled to 500 gradually. The General Manager of SyndicateBank K. Devanand Upadhyaya and General Manager G. Ramanathan and a host of bank officials were present.