Karnataka may cut property guidance value value by 5-10%

Karnataka government is planning to cut the guidance value by 5-10% across the state. The guidance value means the base price of the properties in a particular area fixed by the government i.e. the minimum amount at which the sale of property takes place. The guidance value varies from area to area city wise.

We have received many requests for reduction in guidance value. After reviewing multiple proposals, we have placed a proposal in front of the government said KP Mohan RS, Inspector general of registrations and commissioner of stamps.

Sources claimed that the reduction may not be uniform in all areas; it will range between 5 to 10%.

This move may encourage land acquisitions by investors and government infrastructure projects as the cost of land is linked to the guidance value. Though Bengaluru has a huge unsold inventory the reduction in guidance value will definitely boost the affordable housing in the state.

Kishore Jain, president of Bengaluru chapter of Credai, said the proposal will be a win-win situation for homebuyers, developers and the government. The move will rationalise property rates, ensure healthier transactions and offer much needed boost to the state’s realty market.