Some areas in Bangalore to see hike in guidance value
Guidance Value is the minimum value fixed by government for the property in respective area. The registration cannot be done on a value less than Guidance value
Guidance Value is defined for two categories – land value (for land only) and composite value (for land and buildings – this includes construction cost and associated taxes for buildings).
The stamps and registration department is planning to revise the guidance value of properties which may increase by 75 percent to 80 percent in northern and eastern parts of the city.
According to high officials from the stamps and registration department, the draft of the revision will be submitted to the government in August. After the cabinet gives a nod, the revised values are likely to be implemented from October 2013.
The stamps and registration department said that Hebbal, Yelahanka and neighbouring villages, Arkavathy Layout, Kempegowda Layout, Manyata Tech Park, Whitefield and surrounding villages are going to see a steeper hike on guidance value.
Recently, a team from the stamps and registration department went to Pune to study the Maharastra government’s model of evaluation of property prices. Mainly parts of Bangalore where there not many transactions are taking place would not see much difference in guidance value.
Areas like Residency Road, Brigade Road and MG Road may not see any increase in guidance value of properties where sub- registrars have not witnessed many transactions.
The last time the department increased the guidance value of properties in Bangalore was in September 2011. The guidance value in other districts was revised later.
Inspector-General of Registration and Commissioner of Stamps Syed Adoni Saleem told that the department has collected Rs 5,260 crores during 2013-13 and Rs 6,100 crores is the target for this year.
Sources said that the target would be achievable with the revision of the guidance value. Some specific areas where guidance value was already higher than the market value could also be rationalized. But such areas are very small in number.
In Hebbal, guidance value price for land is in between Rs 1001 to Rs 2000 per sq ft which may increase by Rs 1755 to Rs 3500 while market rate is around Rs 5110. In Yelahanka guidance value is Rs 800 which may increase by Rs 1400 while market value is Rs 4283. In Arkavathy Layout, guidance value is Rs 1001 to Rs 2000 which is expected to see an increase by Rs 1755 to Rs 3500 while market rate is around Rs Rs 3569.
In Hebbal, the market value is going to be double than the guidance value. In Yelahanka, the market value is going to be triple than the guidance value and in Arkavathy Layout has seen minimal increase in the market value from the guidance value.
The revised guidance values will still be less than half of what market values. As its known, Real Estate transactions have black money component involved. The revised guidance values will help reduce the black money component in the real estate transactions.
