Property purchasers would feel the heat as the government of Karnataka increases the guideline value by 15 to 30%.

BENGALURU: Starting on Sunday, the state government of Karnataka will formally increase the guideline value by 15–30%, which will lead to an increase in real estate prices.

The minimum price at which a real estate transaction is formally registered is known as the guideline value. This number is significant because it affects how stamp duty and registration costs are calculated.

Regardless of the property’s selling price, buyers of real estate will be required to pay a fixed registration fee of 1% in addition to a 5.6% stamp duty on the value of the property, including cess and surcharge.

The increase in guideline value is anticipated to improve both government income and property market value. Although the departments of stamps and registration update the guiding value every two years, COVID-19 and the assembly elections prevented this update from occurring for five years.

Property purchasers have been rushing to beat the rise during the past two weeks, causing a feverish rush at all sub-registrar offices across Karnataka. As a result, the government has asked that these offices remain open till 8 p.m. until the end of the month.

According to a senior officer in the Department of Stamps and Registration, the updated guiding value will be announced starting on Sunday. Due to Monday being a holiday in honor of Gandhi Jayanti, only Tuesday will be the day that sub-registrar offices accept registrations. The 253 sub-registrar offices throughout the state have already received the updated guidance values, according to them.

The government would release a notification late Saturday, according to Mamatha BR, inspector-general of registration and commissioner of stamps. Depending on the area, the guidance value can change, with houses along roadsides commanding greater prices.

Krishna Byregowda, the minister of revenue, had previously stated that some places will experience increases of up to 50%, with an average increase in the guidance value of 15–30%. The market price of a property is approximately 500 times greater than the guiding value in Electronics City and the adjacent districts.

The market values would exceed Rs 10 crore if the guiding value for properties along national highways was between Rs 5 lakh and Rs 10 lakh per acre. The recommendation figure is 50% altered in these instances, the speaker added.