Karnataka Slashes Property Guidance Values by 10% for an Additional Three Months

Policy Update May 16, 2022

The guidance value of a given property is the minimum price set by the government below which the sale of that property cannot take place. Various environmental factors such as the locality and the type of structure are taken into account when the guidance value of a property is evaluated [1]. In some states, the guidance value of a property is also referred to as its circle rate.

In a bid to increase property registrations, the government of Karnataka announced a reduction of 10% in guidance values from Jan 1, 2022, initially for a period of 3 months [2]. However, with clarity in the popularity of the decision, in addition to the surplus in revenue generated by the Department of Stamps and Registrations, the government in April decided to extend this period by three months, from April 25, 2022 to July 24, 2022 [3].

At TEAL, we are building the next generation of property due diligence using big data analytics and machine learning. We provide reliable information about property ownership, registration status, disputes, tax compliance history and all other information that you will need to make a safe and secure property investment. To learn how TEAL can help you in your journey, visit tealindia.in.

Property Sales in Bengaluru Have Seen a Steady Increase Since January

The effects of this change have been validated through a noted increase of sales in Bengaluru during the first quarter of 2022, with an increase to the tune of 12.75% QoQ. Mortgage activity in the city has also followed suit, with an increase of nearly 20% QoQ [4].

To further explore the effects of this change, including breakdown of demand by price segment, by locality, and by preferred financial institutions among other key metrics, access TEAL Analytics’ full reports.

[1]https://cleartax.in/s/property-guideline#:~:text=than 50 lakh.-,What is Property Guideline Value%3F,market value of the property.

[2]https://economictimes.indiatimes.com/industry/services/property-/-cstruction/karnataka-government-cuts-property-guidance-value-by-10-pc-for-next-3-months/articleshow/88633962.cms

[3]https://www.deccanherald.com/state/top-karnataka-stories/karnataka-slashes-guidance-value-by-10-for-three-more-months-1102731.html

[4]https://www.tealindia.in/research

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