Bangalore New Guidance Value 2023 & Its Impact on Builders and Buyers

Bangalore, India’s bustling IT hub, is known for its dynamic real estate market. In September 2023, the city unveiled its new guidance value, causing ripples in the property landscape. Bangalore’s new guidance value for 2023 is reshaping the real estate landscape, offering both builders and buyers a fresh perspective on opportunities and investments in the city.

Bangalore, the ‘Silicon Valley of India’, is a city that constantly evolves and reinvents itself. The ever-changing real estate landscape is a critical aspect of this transformation. In Sep 2023, the city introduced its new guidance value, a pivotal parameter in property transactions that can influence everything from property prices to government revenues.

Understanding the implications of this new guidance value is crucial for residents and investors in Bangalore. Whether you are a prospective homebuyer, a real estate investor, or simply curious about the city’s economic dynamics, this blog will provide valuable insights into Bangalore’s 2023 guidance value and its far-reaching effects on the city’s real estate market.

What is Guidance Value in Bangalore?

In Bangalore, the guidance value, the circle rate, or the ready reckoner rate, is the minimum value at which a property can be registered for official transactions. It is determined by the local government’s revenue department and is used as a reference point for property registration and for calculating stamp duty & registration fees.

So, the guidance value serves as a benchmark so that property transactions are conducted fairly and transparently, preventing underreporting of property prices to avoid taxes and fees. It also aids in generating revenue for infrastructure development and public services.

Here is an example to illustrate the concept of guidance value. Let us say you are interested in buying a residential apartment in a particular Bengaluru (Bangalore) area. The seller quotes a sale price of ₹1 crore for the property. However, when you visit the local sub- registrar’s office to register the property, you discover that the guidance value for similar properties in that area is ₹1.2 crores as per the government’s assessment. In this scenario:

1. Stamp Duty and Registration Fees:

   The stamp duty and registration fees you must pay are typically calculated based on the higher guidance value or the actual sale price. In this case, you would have to pay stamp duty and registration fees based on ₹1.2 crores, not ₹1 crore.

2. Impact on Property Transactions:

   The guidance value can impact property transactions significantly. If the guidance value is higher than the sale price, it can lead to higher expenses for the buyer. Conversely, if the guidance value is lower, tax authorities might view it suspiciously as an attempt to evade taxes.

3. Government Revenue:

   The government uses the guidance value to collect revenue through stamp duty and registration fees. A higher guidance value can result in increased revenue for the government.

How to calculate the Guidance Value in Bangalore? [Kaveri Guidance Value Calculator]

To calculate the Guidance Value in Bangalore, you can use the Kaveri Online Services portal, which provides a Guidance Value calculator. Here are the steps to calculate it:

1. Visit the official Kaveri Online Services Portal: https://kaverionline.karnataka.gov.in/
2. On the portal’s homepage, you will find numerous services and options. Click the ‘Guidance Value Calculator’ or a similar option
3. Enter specific details of the property for which you want to calculate the guidance value. These details may include:
   1. Location: Enter the locality, street name, and other location-related information.
   2. Type: Specify whether the property is residential, commercial, agricultural, etc.
   3. Dimensions: Provide the dimensions of the property, such as the site area (in square feet or square metres).
   4. Category: Depending on local regulations, properties may fall under various categories
4. Once you have entered all the required information, click the ‘Calculate’ button. The calculator will then generate the guidance value for your property, based on the data provided by you.

Please note that the exact steps and details may vary slightly depending on updates to the Kaveri Online Services portal or local regulations.

Importance of Paying the Guideline Value of a Property in Bangalore 2023

Paying the guidance value of a property in Bangalore in 2023 is crucial because it:

1. Ensures legal compliance and transparency in property transactions
2. Accurately determines stamp duty & registration fees
3. Prevents legal issues and tax evasion
4. Contributes to government revenue for public services
5. Provides a reference for property valuation and market stability

New Guidance Value in Bangalore for Different Types of Properties 2023

The guidance values for several properties in Bangalore can differ based on the property’s location and type. The local government’s revenue department typically sets these values, which are subject to change over time. Here’s how guidance values could be different for various property types:

1. Residential Properties:

   Guidance values for residential properties are usually determined based on the locality, size of the property, and amenities in the area. Key / established residential areas or neighbourhoods tend to have higher guidance values than less developed or suburban areas.

2. Prime Areas:

   Prime areas in Bangalore, often characterised by central locations, good connectivity, and proximity to commercial hubs, tend to have higher guidance values for all property types, including residential and commercial ones.

3. Commercial Properties:

   Guidance values for commercial properties depend on factors like the location’s commercial potential, accessibility, and infrastructure. Properties situated in bustling commercial districts are likely to have higher guidance values.

4. Agricultural Land:

   Guidance values for agricultural land are typically lower than those for residential or commercial properties. These values are influenced by the land’s fertility, accessibility, and proximity to urban areas.

Factors Influencing the Guidance Value Revision

Various factors, including real estate market conditions, economic factors, supply-demand dynamics, infrastructure development, location, stakeholder feedback, government revenue needs, legal changes, and data analysis, can influence guidance value revisions in Bangalore for 2023.

Another vital reason the rate has been revised is the long overdue change. The Guidance Value of properties has not changed for over five years. These revisions aim to align property transactions with current market realities, and ensure transparency & fairness.

New Guidance Value Impact on Builders

The new guidance values in Bengaluru (Bangalore) for 2023 can have significant implications for builders in several ways:

1. Cost of Land Acquisition

   1. Increase in Land Costs: Builders will face increased land acquisition costs if the new guidance values are higher than previous ones. This can impact their ability to purchase prime land in desirable locations.
   2. Impact on Project Budget: Higher land acquisition costs can increase the overall project budget, affecting financial planning & resources.

2. Project Viability

   1. Profit Margins: The guidance values directly affect Builders’ profit margins. Higher guidance values can reduce profit margins, especially if builders cannot pass on the increased costs to buyers.
   2. Market Demand: The new guidance values may influence buyer demand. Builders may need to reassess their pricing strategies if properties become less affordable due to higher guidance values.

3. Strategies for Builders

   1. Location Selection: Builders may need to choose project locations strategically. They may opt for areas with lower guidance values to keep costs in check.
   2. Pricing and Marketing: Builders may need to adjust their pricing and marketing strategies to accommodate the new guidance values while remaining competitive.
   3. Negotiations: Builders may need to negotiate with land sellers to mitigate the impact of higher guidance values. Negotiating favourable terms becomes essential.

New Guidance Value Impact on Buyers

The new guidance values in Bangalore for 2023 can significantly impact buyers in the following ways:

1. Property Affordability

   1. Affordability Challenges: Higher guidance values can make properties less affordable for buyers. Those looking to purchase homes or investments may need help to enter the market, particularly in prime areas.
   2. Budget Adjustments: Buyers may need to adjust their budgets or consider properties in locations with lower guidance values.

2. Loan Eligibility

   1. Impact on Loan Amount: Guidance values influence the valuation of the property, which in turn affects the down payment amount, assuming loan eligibility of buyers remains constant. Higher guidance values may lead to lower loan-to-value ratios, requiring buyers to provide a larger down payment.
   2. Reassessment of Financial Plans: Buyers may need to reassess their financial plans and loan eligibility based on the new guidance values, potentially delaying their property purchase.

3. Strategies for Buyers

   1. Location Choices: Buyers may explore areas with lower guidance values to maximise their purchasing power and find more affordable properties.
   2. Negotiation: Negotiating with sellers becomes crucial, as buyers may seek price reductions or concessions to offset the impact of higher guidance values.
   3. Loan Planning: Buyers should consult financial institutions to understand the loan terms and eligibility criteria based on the revised guidance values.

List of Sub-Registrar Offices / Registration offices in Bangalore Urban (zone-wise)

Bengaluru east	Bengaluru west	Bengaluru north	Bengaluru south
Indiranagar BDA Complex, Bangalore 560050. Telephone: 25634517	No.488 B-Block, Karnataka Industrial Area Development Board Building, 14th cross 4th Phase, Peenya 2nd Stage, Bangalore 560058. Telephone: 28366091	Sree Rundhreswara Chambers, Yelahanka New Town, Bangalore 560064. Telephone: 22959367	SLN complex, Near RTS Bus Stand, Mysore Road, Kengeri, Bangalore 560060. Telephone: 28484159
Domlur BDA Complex, Bangalore 560038. Telephone: 25352907	Sri Rameshwara Temple Commercial Complex, Near Kannada Sahithya Parishat, IIIrd Main Road, Chamarajpet. Bangalore 560018. Telephone: 26606641	K R Puram, Near Santhemaala, Bangalore 560036. Telephone: 22959345	4th Block, Jayanagar, 12th Main Road, Near Jayanagar Complex, Bangalore 560041. Telephone: 22959347
National Highway, Manjushree Chambers, K R Puram, Bangalore 560036. Telephone: 28472677	19/B, 2nd floor, V K Iyengar Road, Gandhinagar, Bangalore 560009. Telephone: 22959353	No.69. Cholanayakanahalli, R T Nagar Post, Bangalore 560032. Telephone: 22959322	Taluk office premises, Mini Vidhana Soudha, Anekal, Bangalore 562106. Telephone: 27841096
No.7402, 9th ‘A’ Main. II Cross, I block, HRBR Layout, Kalyan Nagar, Bangalore 560043. Telephone: 22959335	Near Vijayanagara Bus Stand, 2nd Main Road, Srirampura, Bangalore 560040. Telephone: 22959349	No.13, Laggere Main Road, Andanappa Building, Parvathi Nagar Bus Stand, Bangalore 560058.	No. 1105-9C, Begur Village, Bangalore 560019. Telephone: 22959328
No.4, Jatar Circle Road, Whitefield, Bangalore 560066. Telephone: 22959342	5th Block, No 1034., Near Dhobi Ghat, Rajajinagar, Bangalore 560010. Telephone: 22959350	No.25, D M Chambers, 3rd stage, RMEL Road, Jawaharlal Nehru Road, RajaRajeshwari Nagar, Bangalore 560098. Telephone: 22959329	No.1, Madanayakanahalli, Dasanapura Hobli, Bangalore. Telephone: 22959325
BBMP Building, Near Ulsoor Lake, Tank Bund Road, Bangalore 560022. Telephone: 22959369	No.40, IInd Stage, behind BDA Complex, Block I, Nagarabhavi, Bangalore. Telephone: 22959315	Amrutha Nagara, Konanakunte, Bangalore 560062. Telephone: 22959330	Additional District Registrar, BDA Complex, Kumara Park West, Bangalore 560001. Telephone: 22959343
1st floor, B M Complex, Muthasandra Road, Opp. Dharmarayaswamy Temple, Varthur, Bangalore 560087. Telephone: 22959198	No.11, I Main Road, Guttahalli, Bangalore 560003. Telephone: 22959357		No.4, Survey No. 33/4A, B H Road, Dasanapura Dakhle, Devannapalya, Bangalore North Taluka. Telephone: 22959326
No.46, Next to Anjan Theatre, Magadi Road, Kempapura Agrahara, Bangalore 560023. Telephone: 22959367	No.111, 9th Main Road, 3rd stage, Pillanna Garden, Kacharakanahalli, Bangalore 560045. Telephone: 22959321	H C Puttaswamy Layout, Hesaraghatta, Bangalore North Taluk, Bangalore 560088. Telephone: 28466100	Bangalore South Taluka, APCM Society, Kanakapura Road, Banashankari, Bangalore 560070. Telephone: 22959331
		NH-7, Opp. Police Station, Bellary Road, Bangalore North Taluk, Bangalore 562157. Telephone: 28467474	No.1943, Tavarekere Kengeri Road, Tavarekere, Bangalore 562130. Telephone: 28430714
		No.70, 5th Main, Ganganagar, Bangalore 560032. Telephone: 22959359	No. 430, Anna Building, Bommasandra Industrial Area, Hennagara Gate, Hosur Main Road, Attibele, Bangalore 560099. Telephone: 27836583
		No. 51/C, 3rd Main Road, Lorry Stand Godown Layout, APMC Yard, Yeshwanthpur, Bangalore 560022. Telephone: 22959366	No 459/39/2, Bannerghatta Village, Opp. Police Station, Bannerghatta, Bangalore 560083. Telephone: 27828207
		No.167-168, B T M Layout I Stage, Tavarekere Main Road, Bangalore 560076. Telephone: 22959360	No.2255, Karuna Complex, Sahakara Nagara, Rajarajeshwari Road, Bangalore 560092. Telephone: 22959341
			No.50/1. Church Street, Bangalore 560001. Telephone: 22959354

 

List of Sub-Registrar Offices / Registration offices in Bangalore Rural (zone-wise)

Bengaluru east	Bengaluru north	Bengaluru south
Mini Vidhana Soudha, Hoskote, Bangalore Rural District 561203. Telephone: 27934525	Taluk Office Premises. Devanahalli, Bangalore Rural District 562110. Telephone: 27681021	Mini Vidhana Soudha Building, Magadi, Bangalore Rural District 562120. Telephone: 27746750
	Mini Vidhana Soudha Taluk Office, Doddaballapura, Bangalore Rural District 561203. Telephone: 27626876	Taluk Office Premises, Mini Vidhana Soudha Building, Kanakapura, Ramanagara District 571511. Telephone: 27255412
	Mini Vidhana Soudha Building, Nelamangala, Bangalore Rural District 562123. Telephone: 27724110	Taluk Office Premises, Old B M Road, Ramanagara, Bangalore Rural District 571511. Telephone: 27276270
		Taluk Office Premises, B M Road, Channapatna, Bangalore Rural District 571501. Telephone: 27255412

 

Guidance value Karnataka: Latest News

Karnataka government collects Rs 311 crore revenue in a single day

On 28 September 2023, the department earned ₹311 crore in a single day and registered 26,000 properties. In its 157-year history, the Karnataka Stamps & Registration Department collected more money on that date than ever.

Latest Guidance Value Karnataka: To be hiked up to 30%

Karnataka has seen an increase in the guideline value of 30-50% as of October 1, 2023. This increase would also affect the property tax, because in Karnataka, stamp duty is 5% of the guideline value and property tax is 2% of that amount.

Upward Valuation Rates in Real Estate – The Gap Between Lower Developers and SOBHA Developers  

When comparing lower-end developers to established ones like SOBHA, several key factors contribute to the differences in these rates. SOBHA is known for its quality construction, prime locations, and premium amenities. Hence, SOBHA homes often experience higher valuation rates. Their reputation for reliability and professional property management also attracts buyers & investors, boosting demand and contributing to property appreciation. This higher valuation ensures that the guidance value hike of Sep 2023 will not impact SOBHA homes.

Buyers and investors should thoroughly research and consider their goals when evaluating property options. While established developers like SOBHA may see stronger property appreciation due to various advantages, it is essential to acknowledge that market dynamics and individual property characteristics continue to influence the actual upward valuation rates, making comprehensive due diligence a crucial step for those navigating the real estate market.

Legal and Compliance Considerations

Legal and compliance considerations for Bangalore’s Guidance Value 2023 include accurate stamp duty and registration fee calculations, transparent property documentation, verification of property titles, consultation with legal experts, payment of applicable taxes, staying updated on government notifications, proper stamping & registration, and maintaining transaction records. Compliance is vital for smooth property transactions and legal protection.

Final Thoughts

In the ever-evolving realm of real estate, Bangalore’s new Guidance Value for 2023 has ushered in a wave of change, shaping the city’s property landscape. Understanding and adapting to these revisions is paramount for anyone involved in property transactions.

In the end, whether you are a prospective homebuyer, an investor, or a seller, the key to success in Bangalore’s real estate market lies in staying informed, seeking legal counsel when needed, and navigating these changes confidently. As Bangalore continues to evolve, so will its real estate sector, and those who adapt wisely will thrive in this dynamic city of opportunities.

FAQs

1. How to find guidance value of property in Bangalore?

To find guidance value of a property in Bangalore, you can use the official portal of Kaveri Online Services (https://kaverionline.karnataka.gov.in) or consult with the local sub-registrar's office.

2. How to find out SR value in Bangalore?

To find out SR (sub-registrar) value in Bangalore, you can visit the local sub-registrar's office or use the Kaveri Online Services portal (https://kaverionline.karnataka.gov.in)

3. How to check guidance value in Karnataka?

To check the guidance value in Karnataka, you can access the official Karnataka government website or use the Kaveri Online Services portal (https://kaverionline.karnataka.gov.in)

4. What is the guideline value of Bangalore rural district?

The guideline value of Bangalore Rural District can be obtained through the Karnataka government's official website or by visiting the local sub-registrar's office

5. What is the hike in guidance value in Karnataka?

The hike in guidance value in Karnataka is up to 50%, effective October 2023. This number can vary from area to area, which depends on government assessments and market conditions. It is advisable to check the latest guidance values for specific areas.

6. What is FAR in BBMP limits?

FAR (Floor Area Ratio) in BBMP (Bruhat Bengaluru Mahanagara Palike) limits is the maximum permissible floor area that can be constructed on a plot of land. It is subject to local zoning regulations, and it may vary by location.

7. How registration value is calculated in Bangalore?

Registration value in Bangalore is calculated based on the higher guidance value or the actual sale price of the property. Stamp duty and registration fees are then calculated based on this value.

8. What is the registration charge for rural sites in Bangalore?

The registration charge for rural sites in Bangalore varies depending on the property's value and location. It can be determined by consulting with the local sub-registrar's office.

9. How many gram panchayat in Bangalore rural district?

Bangalore Rural District has 66 gram panchayats, but this count may change over time. It is best to refer to the official government sources for the current count.

10. What is the difference between guidance value and consideration value?

Guidance value is the minimum value for which a property can be registered for official transactions; it is set by the government. Consideration value is the actual sale price between the buyer and seller. Registration is typically based on the higher of these two values.

11. Should I register property at guidance value or market value?

You should register property at guidance value, to comply with legal requirements. In certain situations, market value may be considered depending on individual circumstances and agreements between parties.

12. How is house property value calculated?

House property value is calculated based on location, size, amenities, and market conditions. It can differ from property to property, and is often determined through professional property appraisal.