Property costs in Bengaluru are set to go up from subsequent month, because the state authorities is mulling a rise in ‘guidance value’. Karnataka Revenue Minister Krishna Byre Gowda on September 19 mentioned that the brand new revised “guidance value” of properties will come into drive from October 1.

What is steerage worth?

The steerage worth is the minimal promoting worth of a property mounted by the federal government, relying on the locality and sort of construction.

As per Karnataka Revenue Minister, the steerage worth needs to be revised on a yearly foundation. However, Bengaluru, which is dubbed the Silicon Valley of India, the identical has not been revised for the final 5 years.

“Registration department should revise the guidance value every year as per the law. However, the guidance value has not been revised for the last five years….. it also leads to black money transactions. Non-revision of guidance value has also indirectly allowed black money transactions. Therefore, the new guidance value will be implemented from October 1,” Gowda informed reporters, PTI reported.

Bengaluru actual property: Market fee vs steerage worth

Explaining the revision of the steerage worth, the minister mentioned

In areas the place the market fee and the steerage worth are related, the steerage worth has been elevated by 10 per cent

In areas the place the market fee is 200 instances increased than the steerage worth, the revised fee has been elevated by 20 per cent to 25 per cent.

The market fee in Bengaluru’s Electronic City space is 500 instances increased than the steerage worth. “While the steerage worth for land on the National Highway is 5 to 10 lakh, the market worth is greater than ₹10 crore. In such areas the new guidance value has been increased by 50 per cent,” he mentioned.

Also, if the steerage worth is increased than the market fee, the authorities have been directed to cut back the steerage worth in such areas, the minister mentioned.

The steerage worth might be elevated from 0 to 50 per cent “case by case” for every area, he added.

A report by Anarock Research in April 2023 exhibits that the common hire prices have risen in double digits throughout most main cities since final yr, with Bengaluru main the pack.

Residential rental values have appreciated by almost 25%, with 4 prime areas in Bengaluru seeing the best spikes. Bengaluru’s Thanisandra Main Road and Marathahalli Outer Ring Road witnessed the best year-on-year progress of 24% every within the January-March quarter, the report mentioned

-With inputs from PTI