BENGALURU: Come October, buying property could get costlier as the government has decided to revise its guidance value across the state.
Guidance value refers to the minimum value at which a property sale can be registered. The Stamps and Registrations Department has already started the process. Sources said the increase could be to the extent of 30 per cent. In Bengaluru, the hike will naturally be on the higher side, given the astronomical real estate rates.
The department has already worked out the revised values and is now in the process of consulting stakeholders. The government has called a meeting of the Bruhat Bangalore Mahanagara Palike (BBMP), Bangalore Development Authority (BDA), the Confederation of Real Estate Developers’ Associations of India, and others on Friday.
“According to the new rules, yearly revision of guidance values is a must. This is to bridge the huge gap between the market rates and the guidance values,” Manoj Kumar Meena, Inspector-General of Registration and Commissioner of Stamps told Express.
Till 2011, the government used to revise the values once in three or four years. But they are being revised every year since 2012 to bring them up to at least 70 per cent of the market value. The government indicates guidance value to ensure that buyers and sellers do not cheat on payments to the government by undervaluing a property.
Meena said the department would soon announce the new rates and call for objections. After due process, the new rates will come into force. However, he refused to give details about the hike. The values were revised last in November 2014.
Though the yearly revision can yield income for the state, it is bound to pinch property buyers, particularly those from the middle and lower class, as sellers hike rates by factoring in the amount payable to the government.