State Govt. likely to increase guidance value by 15% to 20%

Bengaluru: Purchasing property in Karnataka may soon become more expensive, with the State Government likely to increase the guidance value by 15% to 20% from Apr. 1. An official announcement, however, is still awaited.

The guidance value was last revised in October 2023, when it was increased by 30%. With another revision proposed after about two-and-a-half years, the Government is aiming to generate an additional Rs. 2,500 crore in annual revenue.

An increase in guidance value, minimum value fixed for property transactions, directly impacts market prices, as it serves as benchmark for valuation. It also leads to a rise in stamp duty and registration charges.

The move comes at a time when the State is facing financial strain and concerns have been raised over the sustainability of its five guarantee schemes.

Rs. 28,000 cr. target

For the financial year 2025-26, Government had set a revenue target of Rs. 28,000 crore from property registrations.

However, it is expected to fall short by nearly Rs. 3,000 crore, with collections projected to touch around Rs. 25,000 crore by the end of the current fiscal.

Sources attribute part of the shortfall to issues surrounding property registrations after the introduction of mandatory e-Khata.

For 2026-27, the Government is reportedly targeting Rs. 30,000 crore in revenue from the Department of Stamps and Registration and has instructed officials to begin the exercise of revising and tabulating the guidance value.

When contacted, District Registrar Vijayalakshmi Enamdar told Star of Mysore this morning, “We have not received any instructions regarding an increase in the guidance value. At present, we are focused on implementing the GIS-based guidance value system.”

Across the State, guidance values are revised periodically in line with statutory provisions. Historically, property prices have risen following such revisions.

The State has 259 Sub-Registrar Offices, including 43 in Bengaluru and surrounding areas. Around 22 to 24 lakh properties are registered annually, with nearly 60% of transactions recorded in Bengaluru.