Property transactions are set to become more expensive starting from October 1, as the revised guidance values come into effect across Karnataka. Revenue Minister Krishna Byre Gowda announced on Tuesday that there will be an average 25-30% increase in guidance values throughout the state.
The implementation of the revised rate will begin on October 1 in Bengaluru as a first step. For other areas, the subcommittee in each district will discuss and gradually implement the new guidance value, according to Gowda.
The Karnataka government has declared that the new revised “guidance value” for properties will be applicable from October 1. This updated value is expected to rise by an average of 25 to 30% compared to the current guidance value. The guidance value is the minimum selling price of a property determined by the government, based on its location and type of structure.
During a press conference, Karnataka Revenue Minister Krishna Byre Gowda stated that the guidance value should be revised annually according to the law. However, it has not been updated for the past five years, leading to the occurrence of illegal transactions involving black money. The non-revision of the guidance value has indirectly facilitated such transactions. Consequently, the new guidance value will be implemented from October 1.
The minister also emphasized that the state government has granted officials the authority to adjust the guidance value on a case-by-case basis, whenever there is a discrepancy between the guidance value and the market price. This measure aims to address any disparities and ensure fairness in property transactions.
For example, in areas where land prices are 500 times higher than the current guidance value, the state government has decided to increase the guidance value by 50%. Similarly, in places where land prices are 200% higher than the guidance value, the guidance value has been increased by 20% to 25%. In cases where the guidance value is equal to the land value, the state has chosen to increase the guidance value by only 10%.
The minister explained the rationale behind the revision of the guidance value. In areas where the market rate and the guidance value are similar, the guidance value has been increased by 10%. On the other hand, in areas where the market rate is 200 times higher than the guidance value, the revised rate has been increased by 20% to 25%. If the guidance value exceeds the market rate, the authorities have been instructed to reduce the guidance value in those areas.
The minister also emphasized that individuals who have objections to the guidance value revision can submit their concerns. The officials will take note of these objections and incorporate them into the implementation of the new guidance value.