An article about " Revised Guidance Value for Bangalore Properties "

Revised Guidance Value for Bangalore Properties

The Department of Stamps and Registration with a view to mop up more revenue has hiked the guidance value for properties in Bangalore and has notified the same recently calling for objections and suggestions from the general public. This new move is expected to bring in around Rs.1000 Crores more revenue to the State Government in the current financial year. The revised property guidance value is likely to be implemented in the month of August 2013.

Shelter is one of the basic necessities of every citizen and everyone is struggling hard to have a home of their own. The overall increase in the revised guidance value on properties across Bangalore is around 20 to 100 per cent which makes the properties costlier adding to the woes of the buyers. The areas especially the central areas, southern areas and northern areas which have witnessed increased property transactions have seen increased guidance value of up to 100 per cent. The slum areas where property transactions were less have seen the least increase of around 10 per cent in the guidance value.

As per the list put up by the department the highest residential property value is in UB Towers a 19 storeyed luxury apartment property centrally located in vittal  Mallya road which is around Rs.20150 to Rs.20350 per square feet. The highest revised guidance value for commercial property is in 100 feet road of Indiranagar, where the value is notified at Rs.20000 per sq ft.

The guidance value was last revised by the Stamps and Registration Department in September 2011, which is an important source of revenue to the State Government. The Inspector-General of Registration and Commissioner of Stamps has said that the department has collected Rs 5,260 crores during 2013-13 and the target for this year is around Rs. 6,100 crores .

The approximate overall proposed hike in the guidance value of properties in some of the areas of the city are -

Area	Pre-revised Guidance value in Rupees	Revised Guidance value in Rupees
KG Road	13000	15400
Avenue Road/Chikkapete	7800	11200
Hebbal	2000	3500
Yelahanka	800	1400
Defence  Colony	6000	10500
80 Feet Road, Indiranagar	5400	11000
HAL 2nd Stage	3000	6000
12th Main Indiranagar	5500	8000

The proposed provisional guidance value for apartments on super built up area basis (SBUPA) has also gone up steeply and the amenities offered will also attract higher valuation. Even the car parking areas are not spared and a covered parking in an apartment valued at Rs.50Lakhs is valued around Rs.1.5lakhs and Rs.1.35Lakhs for uncovered parking. Similarly, apartment above 5^th floor are also likely to see steep hike in prices for every additional floor. The cost of villas will be pushed up by around 20% and that of apartments from 13 to 16% for by the proposed revised guidance values of properties. The land value nearer to ORR and highways is also likely to witness steep increase in prices ranging from 6 crores to 9 crores per acre.

The builders and developers have felt this move of the government will definitely have a negative impact on the real estate industry especially in Bengaluru city. The last quarter has seen poor results in the software sector due to depreciation of Indian Rupee against the USD and also economic slowdown. These developments have impact on the realty sector, the proposed revised guidelines values of properties are bound to create more burdens on the property buyers which in turn affect the sales of residential properties.

The residential property buyers will be the ultimate sufferers because of these latest developments, the Government must take their problems into consideration andact positively to mitigate their problems at least to some extent.