Property sales in Bengaluru become more expensive from October 1, 2023, as the new guiding values takes effect.
As the guidance values are implemented, the revised forecasted value is anticipated to increase by approximately 25% to 30%. The minimum selling price of a property, which is determined by the government and varies depending on the location and type of structure, is referred to as the guideline value. The state administration has undertaken deliberate measures to adjust the guideline value in accordance with the prevailing market rates of land within specific regions.
In accordance with the law, the registration authority is mandated to annually revise the guideline value. Regrettably, over the past five years, the guideline value has remained stagnant, resulting in an unfortunate loophole that facilitated illicit financial transactions. Consequently, the newly revised guideline values came into effect on October 1.
For instance, in Electronics City, land prices currently stand at 500 times the existing guideline value. In response to such disparities, the state government has opted to elevate the guideline value by 50%. In situations where land prices exceed the guideline value by 200%, the guideline value has been adjusted upwards by a margin of 20-25%. Additionally, when the guideline value aligns with the actual land value, the state has resolved to implement a 10% increase in the guideline value.
While the guidance value for National Highway land is between INR 5,00,000 and INR 10,00,000 the market price is more than Rs 10 crore. The new guiding value in these regions has been increased by 50%. Furthermore, if the guiding value is higher than the market rate, the authorities have been asked to lower the guidance value in those locations.
The state government has also given officials the authority to cut or enhance the guidance value on a case-by-case basis whenever there is a discrepancy between the guidance value and the market price.
There is a state law that stipulates that the guidance value and market value of the land should be similar and that there should not be a significant gap between the two of them. As a result, it cannot be definitively stated that this is an increase in guidance value, but at best it can be described as resolving the anomaly, and any shortcomings need to be remedied. Any complaints to the revised guidance value can also be submitted. The officials will take notice of it and put the new guidelines into effect.
Once the state effectively utilizes the Kaveri 2.0 technology, as many as 10,000 to 12,000 properties will be registered. On a single day, up to 140 properties have been registered in one of the offices. As a result of this, the state has generated Rs. 800 crores in revenue.