BENGALURU: The guidance value of properties across Karnataka is likely to be hiked by 15 per cent by April, and the Stamps and Registration department has started the exercise of tabulating guidance values.
"Guidance value revision is being done after a gap of two years and will be in the range of 12-15 per cent per square metre. The last revision was done in 2023, and the one prior to it was done in 2019. Since there is a two-year gap, and the cost of properties has escalated, the increase will be less than the previous revision which ranged from 0-30 per cent," a senior revenue department official told The New Indian Express.
Citing an example, the official explained that guidance value for 1 sqm on the stretch from MG Road to Ulsoor Junction in Bengaluru in the year 2019 was Rs 1,57,700. It was revised to Rs 1,81,500 in 2023, and if hiked by 15%, the guidance value will be Rs 2,08,785 per sqm.
An official said: "We have started with the table-top exercise of properties in the state, and in the coming days, field visits will also start. Ideally, revision should be done annually, but was not done last fiscal due to political reasons. To increase revenue, revision in guidance value is essential. Besides, the cost of properties is also rising."
The guidance value is calculated and revised based on the number of transactions, market value of the property and potential rise in rates in the next couple of years. The debt coverage ratio and debt service ratio is also taken into account while calculating guidance value.
"We have also been given revenue targets, which have not been met in the past couple of years. Though the cost of properties is rising, sales are not. Through this exercise, we are making an attempt to assess market transaction trends. Though Bengaluru is costliest compared to other cities, the number of properties registered is not rising as expected. This could be because of rising costs," observed revenue officials.
According to records, 24.67 lakh properties were registered in the state in 2023-24, and 23.39 lakh properties were registered in 2024-25. During the same period in Bengaluru, 5.73 lakh and 4.20 lakh properties were registered, respectively. "Around 60 per cent of revenue is generated by Bengaluru due to high cost, and not because of the number of units registered," the official noted.
The target set for the year 2023-24 was Rs 20,000 crore, and the department generated revenue of Rs 20.287 crore. However, in 2024-25, against the set target of Rs 26,000 crore, it achieved Rs 22,498 crore and in 2025-26, while the set target is Rs 28,000 crore, the department has achieved Rs 20,371 crore on till January 2026.