Bangalore Corporation Planning to Raise Guidance Values
The corporation is planning to hike guidance values by 20 to 30 per cent within the city and 10 to 150 per cent in the suburbs. BBMP officials say the correction is long overdue. The last revision was in 2007, and the state government says it has lost revenues due to under valuation of properties. The current guidance value for apartments in Kudlu near Electronics City is Rs 1,110 per sqft. But the prevailing market rate is almost three times as much at Rs 3,000 per sqft. In Sarjapur (Anekal taluk), the guidance value is only Rs 880 sqft, in some others it’s as low as Rs 560 when the market value is almost four times as much.
The guidance value tends to be about 60% of the market value. Developers and real estate agents say that the city corporation’s proposed property guidance value increases are so steep that it could numb the already subdued real estate market. Farook Mahmood, MD of real estate brokerage firm Silverline Realty, says the revision is a bad idea especially when sales have slowed. “After the interest rate increases, BBMP’s idea is the last nail in the coffin. The realty market is yet to recover from the crash. And market values are nowhere what they were in 2007.”
Some property analysts say it could also push up land prices in certain areas.
J C Sharma, MD of Sobha Developers, said the guidance value should be moderate in a high interest scenario. “Buyers are facing a tough time servicing their home loans. Any drastic increase will have an adverse impact on sales.”
Naresh Dandapat, regional director-South in property consultancy Knight Frank India, says that as the guidance value goes up, the landowner will jack up the price of his property. This he says could happen especially in areas like Thanisandra, Jakkur and Rachenahalli where the value is about Rs 560 per sqft, while the market value is Rs 2,400 per sqft.
Bangalore, Bangalore property guidance values, BBMP plans to hike guidance values, Developers frown on guidance value hike, Guidance value for apartments, guidance values bangalore, under valuation of properties
It’s been some years but I’ll never forge the sadness I felt when they closed Langhorne Speedway. It was a one mile dirt (I think the last) which hosted USAC and ARDC Midgets, USAC Sprints and USAC Indy cars for years.I guess this generation isn’t ready for the dust in the teeth and lungs (and ass)…