The new market-based guidance value for property registration came into effect on Monday, pushing up the land cost by 30%-50 % in 90% of Bangalore city areas to 100% in the rest.
UB Towers on Vittal Mallya Road is the most expensive property in Bangalore, followed by Raj Bhavan Road, Commercial Street and Sankey Road.
The value of the property at UB Towers has been pegged between Rs 20,150 and Rs 20,350 per sqft. And properties on the outskirts of Bangalore North taluk cost about 1% of that – Rs 250 per sqft, making them the cheapest in the current revision.
The revision is expected to increase the government’s revenue by Rs 1,500 crore, taking it closer to the Rs 6,700-crore mark in the 2013-14 financial year.
For the first time, the registration of houses and villas in the gated neighbourhoods has been included with the guidance value that ranges between Rs 500 and Rs 1,000 per sqft.
Revision likely to curb black money
The final values have been published with minor changes, based on feedback from citizens, said Adoni Syed Saleem , inspector-general of registration and commissioner of stamps.
An officer in registration department said: “The revision will help augment our revenue collection, and curb black money in property deals.”
N Manjunath, a realty dealer in Yelahanka, said: “The revision is expected to have a negative fallout in the initial 3-4 months and property registrations may slow down.” The revised guidance values of properties in BangaloreRural and Ramanagara districts have also been published.
The revision will apply to villas, apartments and gated communities. Geographical Information System was used for the first time to determine areas that have witnessed a growth in the number of apartments. Revision has been based on locations / type of construction /amenities provided etc. The lowest value per square foot is Rs. 250 and the highest Rs. 20,350 per sqft
Effect of the rise
Property values will go up by around 30-50 per cent. Low and middle income groups will be discouraged from buying property. Developers will, naturally, load the increase on the buyers.