Bengaluru news: Property prices in India's Silicon Valley are set to go up from next month. Here is why
Bengaluru are set to go up from next month, as the state government is mulling an increase in ‘guidance value’. Karnataka Revenue Minister Krishna Byre Gowda on September 19 said that the new revised "guidance value" of properties will come into force from October 1. The guidance value is the minimum selling price of a property fixed by the government, depending on the locality and type of structure.
As per Karnataka Revenue Minister, the guidance value should be revised on a yearly basis. However, Bengaluru, which is dubbed the Silicon Valley of India, the same has not been revised for the last five years. "Registration department should revise the guidance value every year as per the law.
However, the guidance value has not been revised for the last five years..... it also leads to black money transactions. Non-revision of guidance value has also indirectly allowed black money transactions.
Therefore, the new guidance value will be implemented from October 1," Gowda told reporters, PTI reported. Explaining the revision of the guidance value, the minister said In areas where the market rate and the guidance value are similar, the guidance value has been increased by 10 per cent In areas where the market rate is 200 times higher than the guidance value, the revised rate has been increased by 20 per cent to 25 per cent. The market rate in Bengaluru's Electronic City area is 500 times higher than the guidance value.
"While the guidance value for land on the National Highway is 5 to 10 lakh, the market price is more than ₹10 crore. In such areas the new guidance value has been increased by 50 per cent," he said. Also, if the guidance value is higher than the market rate, the authorities have been directed to reduce the
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