Property prices in Bengaluru set to go up from today. Here is why

Karnataka revenue minister said in areas where the market rate and the guidance value are similar, the guidance value has been increased by 10 per cent.

Property prices across Bengaluru are set to go up starting from Sunday as the Karnataka government announced the increase in property guidance value by 25 to 30 per cent to the current value. The government stressed that the decision was taken as the guidance value of properties remained unchanged for the last five years.

Property prices in Bengaluru set to go up from today. Here is why

The guidance value is the minimum selling price of a property fixed by the government, depending on the locality and type of structure.

The 5.6 per cent stamp duty on the value of property and fixed registration fee of 1 per cent with cess and surcharge are to be paid by the buyer. Many sub-registrar offices in Bengaluru saw a heavy rush in the past one week where the buyers lined up to wrap up the property registrations before October 1.

Speaking to the reporters earlier, Karnataka Revenue Minister Krishna Byre Gowda said, "The 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."

Explaining the revision of the guidance value, the minister said in areas where the market rate and the guidance value are similar, the guidance value has been increased by 10 per cent, and in areas where the market rate is 200 times higher than the guidance value, the revised rate has been increased by 20 per cent to 25 per cent.

If the guidance value is higher than the market rate, the authorities have been directed to reduce the guidance value in such areas, the minister said.

On October 1, as a first step, the revised rate at Bengaluru will be implemented. For the rest, the subcommittee in each district will discuss and implement the new guidance value gradually, Gowda said.