Property Guidance Value hiked; comes into effect from today

Mysuru: The State Government has hiked the guidance value of properties by 5% to 25% and the revised rates have come into effect from today (Jan.1, 2019) at all Sub-Registrar Offices. Henceforth, property rates are set to go up along with registration charges in city and its outer limits.

Guidance value is the price of a property fixed by the Government, and property registrations cannot go below that fixed price. This is also a major revenue source for the Government. The rates have remained unchanged in State since 2016 owing to a sharp decline in the Real Estate sector. The guidance value has been increased to give a fillip to the Real Estate sector which has seen a slump in recent times. Statewide, Mysuru and Mangaluru have seen the steepest hike of 5 percent to 25 percent. The guidance value has been published by the Department of Stamps and Registrations after inviting objections. The Department had published a notification in this regard in September last year.

Properties coming under all the four Sub-Registrar Offices in Mysuru (all Taluks, Corporation, Gram Panchayats, Town Panchayat) including land, houses, agricultural land, sites, flats, villas, villaments, apartments, corner sites, sites on approach roads, industrial and commercial properties, multi-storeyed buildings and all immovable properties will see an increase in prices.

As per the Stamps and Registration Act, the guidance value has to be revised every year. However, the revision was postponed last year due to the Assembly elections held earlier this year. The hike will mean an increase in stamp duty rates, which the buyer has to pay while buying or leasing properties and also premiums charged on Floor Space Index and other property-related payments.

As per the revised guidance value, property prices along the sides of the roads that criss-cross the city will see a steep hike and there are different prices for different areas. (See table)

Following reform measures like demonetisation and the introduction of Real Estate Regulation Act, the Real Estate sector had seen a downward trend. Only now, since 2016, the market is showing signs of revival and the Government move is set to  boost the sector.


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This post was published on January 1, 2019 6:43 pm