Buying a house may become a more expensive prospect as a proposal to hike guidance value by 5 to 10% has been placed before the government. Sources said the government is likely to take a decision by mid-March.
Last year, the Department of Stamps and Registrations had hiked the guidance value by 5% to 25%. Guidance value is the base price of properties in a particular area fixed by the government. Property registrations cannot go below that fixed price. It is a major revenue source for the State.
Sources said the proposal has factored in the inflation rate as well as cost of living. “We have to revise it every year. A 5 to 10% enhancement is what we are looking at this time, and the proposal is with the government,” said an official..
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Before the hike in 2019, the guidance value had been hiked in March 2017. But reasons such as the slump following demonetisation and the Assembly elections had resulted in the guidance value not being revised. Officials had said that there had been a huge gap between the guidance value and market rates before the 2019 revision.