Property prices in Bengaluru are set to go up from October 1, as the state government is mulling an increase in guidance value by 20-30 percent, Revenue Minister Krishna Byre Gowda told reporters at Vikasa Soudha on September 19.
"The registration department should revise the guidance value every year as per law. However, the guidance values have not been revised for the last five years. On average, the increase will be 20-30 percent depending on the areas; it may go up as high as 50 percent in dense IT corridors," Gowda said.
He added that in areas where the market rate is 200 times higher than the guideline rate, the revised rate has been increased by 20 percent to 25 percent. "Yet the market rate in the IT corridor’s Electronic City area of Bangalore is almost 500 times higher than the guidance value," he said.
The minister added that Bengaluru will be the first to get revisions, followed by other districts in Karnataka.
Guidance value is the minimum value at which the sale of a property can be registered with the state government. It is also known as the circle rate in some states.
Previously, in May, Moneycontrol reported that the state government was planning to hike property guidance values by 10-30 percent.
Speaking at the conference, Gowda also said that more than Rs 800 crore worth of property registrations have been done in September since last year, and the government is looking forward to mopping up more revenue through stamp and registration fees.
The last hike in guidance value, by 25 percent, was done in 2018-19.
Previously, on July 7, while presenting the state’s budget for 2023–24, Chief Minister Siddaramaiah proposed a revision of the guidance values of properties in the state.
In most prime locations, or central business district (CBD) areas, the difference between the guidance value and actual property prices is about 40-50 percent, while in the outskirts it's about 30 percent, local brokers say.
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