Property prices in Bangalore are seemingly to step up soon because the stamps and registration department is proposing to revise guidance value by 8- 10 percent this year.
The draft for guidance value revision has been sent to the state government and is probably going to be approved within the budget session once that’ll be enforced, a senior revenue department official seeking namelessness told The New Indian Express.
The aim has been set high this time to assist the cash deficit, state government raises funds for various schemes and projects. For the year 2019-20, the state government had given the revenue department a target of Rs 11,828 crore. To date it has collected Rs 10,100 crore for stamp duty, registration and taxes.
“The largest increase is going to be in the areas of north and east Bangalore wherever there‘s most development and also the demand for properties is extremely high. It’s conjointly been noted through the micro-market analysis and growth poles. Property in the outskirts of the town will also see a rise in guidance value. The rise in guidance value is larger driven by the growth rate that is 7 percent compared to last year,” the official said.
Guidance value in some places can rise by 10 percent however can stay flat in others as it has already reached its saturation. Special attention is additionally being paid to places wherever there has been undervaluation and places wherever giant infrastructure projects are coming up such as Rajajinagar, Basavanagudi, Electronic city, Hebbal, and Yelahanka, etc., the department has conjointly noticed gaps in tax collection of 5 – 10 percent that is additionally being set right, the official said.
Revision of guidance value is meant to be an annual exercise. In 2019, the guidance values were revised after three years and this year, already a year and two months are over.
According to the last revision, Jaynagar 11th main 4th T block had the highest guidance value of Rs 4,57,400 per square feet in the category of the commercial site and OTC Road (from BBMP office to Kumbaragudi Road) in Gandhinagar zone had highest guidance value of Rs 3,44,500 per sqft in the residential category. The lowest guidance value was RS 900 was in Jayanagar zone for economically weaker sections of society in the residential category and Rs 1,800 in Chikkanagalli, Basavanagudi zone, in the commercial category.