Property prices in Bengaluru are set to go up from October 1, 2023, as the state government is planning an increase in guidance value by 20-30 percent. The guidance value, also known as circle rate, is the minimum price set by the government for registration of a property in any particular area. It is used to calculate stamp duty and registration charges.
The Karnataka Revenue Minister, Krishna Byre Gowda, said that the guidance value has not been revised for the past five years, and the increase is necessary to align it with the market value. He added that the government aims to generate additional revenue of Rs 2,000 crore from the revised guidance value.
The increase in guidance value is expected to have a cascading effect on property prices in Bengaluru. Property buyers will have to pay more for registration and stamp duty, and sellers may also raise the prices of their properties.
The impact of the increased guidance value will vary depending on the locality and type of property. Properties in prime areas and IT corridors are expected to see a higher increase in prices.
Some experts believe that the increase in guidance value may have a negative impact on the real estate market in Bengaluru. They argue that it could make property unaffordable for buyers and could lead to a slowdown in sales.
However, other experts believe that the increase in guidance value will have a positive impact on the market in the long term. They argue that it will bring the guidance value more in line with the market value, which will make the market more transparent and efficient.
Overall, the increase in guidance value is likely to have a mixed impact on the real estate market in Bengaluru. It is important for buyers and sellers to be aware of the changes and to factor them into their decision-making.
Here are some tips for buyers and sellers in Bengaluru:
- Do your research and understand the market value of properties in the areas you are interested in.
- Be prepared to negotiate with sellers, especially in prime areas.
- Consider buying a property under construction to save on stamp duty and registration charges.
- Get your property valued by a professional before you put it up for sale.
- Be realistic about your asking price, taking into account the new guidance value and the current market conditions.
- Be willing to negotiate with buyers.
It is also important to note that the government has not yet released the final revised guidance values. The new rates are expected to be announced in the coming weeks.