Karnataka: Property rates in Bengaluru are likely to rise as the Karnataka government has announced an increase in the "guidance value" of properties. The updated guidance value will come into effect on October 1, according to Karnataka Revenue Minister Krishna Byre Gowda.
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What is a Guidance Value?
A guidance value is the minimum selling price of a property which is set by the government and is determined on the basis of location and property type.
On the whole, the revised guidance value will increase by 25 to 30 per cent on an average.
"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," Gowda told reporters.
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.
The market rate in Bengaluru's Electronic City area is 500 times higher than the guidance value.
"While the guidance value for land on the National Highway is 5 to 10 lakh, the market price is more than Rs 10 crore. In such areas the new guidance value has been increased by 50 per cent," he said.
With inputs from PTI
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