Property prices in Bengaluru, the nation’s tech hub, are on the rise, making life more expensive for its residents.
Starting from October 1, 2023, property prices will go up due to an increase in the ‘Guidance Value’ set by the Karnataka Government.
New Guidance Values from October 1, 2023
Karnataka Revenue Minister, Krishna Byre Gowda, announced on September 19 that the revised guidance values will come into effect on October 1, 2023.
This change is expected to impact property prices, according to PTI reports.
What is Guidance Value?
The surge in property prices is linked to higher guidance value rates. Guidance value represents the minimum selling price set by the government based on the location and property structure.
The Karnataka Revenue Minister emphasized the need for yearly revisions to prevent black market transactions.
In Bengaluru, often dubbed India’s Silicon Valley, the guidance value remained unchanged for five years, leading to illicit transactions.
Rate Hikes in Guidance Value
Areas where market rates match guidance values will see a 10% increase in guidance value.
In cases where market rates are 200 times higher than the guidance value, a 20% to 25% hike will occur.
Notable 50% Increase in Certain Areas
Notably, Bengaluru’s Electronic City has market rates 500 times higher than the guidance value.
This means land near the National Highway, which costs Rs 5 to 10 lakh, has a market price exceeding Rs 10 crore.
In such regions, guidance values may rise by up to 50%, although the Karnataka Revenue Minister clarified that such significant increases would be based on individual cases and merit.
