Bengaluru, Karnataka, is poised for a significant shift in property guidance values, with an anticipated increase of 25-30% set to take effect from October 1. This revision comes after a five-year hiatus in reassessing guidance values, and it is expected to have a substantial impact on the real estate landscape in the city.
Karnataka Revenue Minister, Krishna Byre Gowda, announced this development during a press briefing on Tuesday. He also disclosed that certain areas, such as Electronic City within Bengaluru, will see a much steeper adjustment, with guidance values experiencing a 50% upward revision.
“In Electronic City and its environs, property market prices currently stand at approximately 500 times the existing guidance values. For instance, if the guidance value for properties along the national highways ranged from Rs 5 lakh to Rs 10 lakh per acre, the actual market prices soared well above Rs 10 crore. Consequently, a substantial 50% revision in guidance values is being instituted in these high-demand zones,” Gowda explained.
In areas where property market values align closely with existing guidance values, a more modest 10% adjustment will be implemented, according to Gowda. The revised guidance values will first take effect in Bengaluru on October 1, while other districts in the state will receive updated values in stages.
Gowda emphasized, “Overall, there will be a notable 25-30% revision in guidance values.”
The state government initiated the process by issuing a preliminary notification last week outlining the proposed changes in guidance values for Bengaluru. Additionally, draft guidance values for seven different zones within the city were released in the first week of September.
To ensure transparency and gather feedback, the government has set a deadline of September 23 for the public to submit objections or concerns regarding the proposed values.
Gowda also highlighted that Karnataka has been witnessing a surge in property registrations, with approximately 10,000 to 13,000 properties being registered daily. This boost in registrations can be attributed, in part, to the implementation of the Kaveri-2 software, which has significantly streamlined the registration process, reducing wait times from an entire day to just 20 minutes.
As of September, the Stamps and Registration Department has reported a substantial increase in revenue compared to the previous fiscal year, with revenues exceeding expectations by Rs 800 crore. This increase underscores the robust activity and interest in the real estate market within Karnataka.
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