BENGALURU: Property prices in Bengaluru are likely to escalate soon, as the Stamps and Registration Department is proposing to revise guidance values by 8-10 percent this year. The draft for guidance value revision has been sent to the state government, and is likely to be approved in the budget session after which it will be implemented, a senior revenue department official seeking anonymity told The New Indian Express.
The aim has been set high this time to help the cash deficit state government raise 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. So far it has collected Rs 10,100 crore from stamp duty, registration and taxes.
“The largest increase will be in areas of north and east Bengaluru where there is maximum development and the demand for properties is also very high. It has also been noted through the micro-market analysis and growth poles. Property in the outskirts of the city will also see an increase in guidance value. The increase in guidance value is largely driven by the growth rate which is 7 per cent compared to last year,” the official said.
Guidance value is some places will rise by 10 percent but will remain flat in others as it has already reached its saturation point. Special attention is also being paid to places where there has been under valuation and places where large infrastructure projects are coming up such as Rajajinagar, Basavanagudi, Electronic City, Hebbal and Yelahanka, etc. The department has also noticed gaps in tax collection of 5- 10 per cent which is also being set right, the official said.
Revision of guidance value is supposed 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, Jayanagar 11th Main 4th T Block had the highest guidance value of Rs 4,57,400 per square foot in the commercial sites category and OTC Road (from BBMP office to Kumbaragundi Road) in Gandhinagar zone had the 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.