Bangalore, August 17: The number of high value properties — costing between Rs. 1 crore and Rs. 5 crore — being registered in the State has seen a sharp increase over the last decade. This increase has been attributed to a general rise in the value of properties in the city and an increased interest in the real estate segment here among non-resident Indians.
As many as 4,382 high-value properties were registered in 2012-2013, bringing in a revenue of Rs. 865.75 crore as stamp duty and registration fee to the government or about 16 per cent of total revenue. In 2003-2004, the number of such properties registered was a mere 72 that brought in Rs. 12.06 crore.
While 3,274 properties in this price bracket were registered in 2011-2012, some 2,382 properties were registered in 2010-2011.
“Most of these properties are being registered in Bangalore and fewer number in other cities,” a source in the Department of Stamps and Registration, said, adding that the numbers have only increased in the decade, barring 2008-2009 when the economic slowdown affected real estate. Besides, since 2003, the guidance value of properties has been revised thrice, the official said
“While the incremental increase in the price of properties has been between 10 and 15 in the last two years, the depreciation of rupee value in the same period has also contributed to the increasing number of NRIs showing interest in Bangalore’s real estate sector,” Bijay Agarwal, Managing Director of Salarpuria Sattva, said. During the decade, land prices in Bangalore appreciated by three to four times, pushing up the general value of properties, he added.
So much so that today, according to Mr. Agarwal, in Bangalore one in three properties launched by big builders is an apartment project where the cost of a flat ranges from Rs. 2.5 crore to Rs. 4 crore. “There is good response from the market and developers are looking to increase their presence in this segment.”
If the high value properties contribute about 16 per cent of the total revenue, the popular mid-segment properties ranging from Rs. 10 lakh to Rs. 1 crore continue to contribute a major chunk to the revenue. Nearly 38 per cent or Rs. 2,026 crore was collected in 2012-2013 with registration of over 1.15 lakh documents.