Prices are poised for an upward trend in Karnataka, from Sunday, as the state government officially raises the guidance value by 15-30%. The guidance value is the minimum price at which a property transaction is officially registered. This value is significant as it determines the calculation of stamp duty and registration fees. Buyers of properties will have to pay a 5.6% stamp duty on the property's value, including cess and surcharge, in addition to a fixed registration fee of 1%, irrespective of the property's selling price.
The increase in guidance value is expected to boost government revenue and market value of properties. Though the stamps and registration departments revise guidance value every two years, this revision did not happen for five years due to Covid and assembly polls.
Over the past two weeks, there has been a frenzied rush at all sub registrar offices across Karnataka as property buyers tried to beat the hike, compelling the government to ask these offices to function until 8pm till the month-end. A senior officer in the stamps and registration department said the revised guidance value will be notified with effect from Sunday.
The government would issue a notification late Saturday. The guidance value can vary depending on the locality, with roadside properties attracting higher prices. On an average, the guidance value will see a 15-30% increase, with some areas seeing an uptick of up to 50%.
In Electronics City and surrounding areas, the market price of a property is around 500 times higher than the guidance value. If the guidance value for properties along national highways was Rs 5 lakh to Rs 10 lakh per acre, the market prices would exceed Rs 10 crore. In such places, the guidance value is revised by 50%.
