Introduction
In Karnataka, the minimum value at which a property can be transacted is called the Guidance value. It is also known as the Circle rate or Ready Reckoner Rate. This value depends on various factors such as location, amenities, and infrastructure in the area. It is revised from time to time according to the prevailing real estate market conditions. Read on to know the latest updates of guide value in Bangalore.
Table of Contents
- Guidance Value in Bangalore
- Example Of Guidance Value
- Calculating Guide Value in Bangalore
- Per-Square-Meter Guidance Value in Bangalore
Bangalore Real Estate: Also known as a ready reckoner (RR) rate or circle rate in other states. The guidance value in Bangalore is regulated by the Stamps and Registration Department, Karnataka. The guidance value is taken for both land parcels and built assets.
In the case of plots, the value is calculated based on the available land area, excluding any built-up property. The assessed value of built assets, including land, is called the composite value.
Guidance Value in Bangalore
The guideline value is the minimum value that a home buyer has to pay for a property. The property can be sold at any maximum price, known as the market rate, which includes the final price paid by the home buyer, along with amenities and other infrastructure. Naturally, the market rate of the property is higher than the guideline value.
Stamp duty charges and registration fees are determined according to the guidance value and serve as the primary revenue stream for the Government of Karnataka. To bridge the gap between the two, the state government revises the guideline value annually. However, the most recent revision in the guideline value, which will be applicable from October 1, 2023, will take place over five years.
The revision in values will help the government generate more revenue through stamp duty and registration fees. Bridging the gap between the guidance value and the market rate will also help curb the circulation of black money in the real estate sector. Any upward revision in the guidance value will increase the market price of the property.
Example Of Guidance Value
For example, if the market price of a property in a particular area is Rs. 10,000 and the guidance value per sq. ft. is Rs. 7,000 as fixed by the Revenue Department, the home buyer can register the property at the rate of Rs. 7,000 per sq. ft. and anywhere between Rs. 10,000.
A property with a market price of Rs. 5,000 and a guidance value per square foot of Rs. 7,000 will be rated. The home buyer will pay less than Rs7,000 for a property that is unable to be registered.
Calculating Guide Value in Bangalore
The Department of Stamps and Registration launched Kaveri, an online platform for guide value calculation, in Bangalore in 2022. There are step-by-step steps to calculate guide values in Karnataka. Read below.
- Go to the Kaveri website or search for ‘Know Your Property Valuation’
- Select the district, Taluka, area name, and village from the drop-down menu
- Select the property usage type and the total area, along with the measurement unit
- The values will appear on your screen.
Assessing the value of the Bangalore (Urban) Guide. The guide has 42 sub-registrar offices to control value. The state government has set up five sub-registrar offices for rural areas.
Per-Square-Meter Guidance Value in Bangalore
The table below displays the Guidance Value in Bangalore per square meter as of 2023.
| Localities in Bangalore | Guidance Value (Rs/sq meters) |
| Vani Vilas Market to D. Banumaiah Circle | Rs 32,000 |
| RMC Circle to Highway Circle | Rs 32,600 |
| K.R. Circle to Ayurveda Hospital Circle | Rs 1,15,000 |
| B.M. Sri Nagar Cross Road | Rs 28,000 |
| Ayurveda Hospital to RMC Circle | Rs 49,100 |
| Kumbarakoppal South Side | Rs 13,000 |
| Kumbarakoppal Crossroads | Rs 9,600 |
| Banumaiah Circle to KR Circle | Rs 68,200 |
| Kumbarakoppal Main Road | Rs 1,29,000 |
| Kumbara Koppal Colony | Rs 6,500 |
| Gokulam Main Road | Rs 38,400 |
| Gokulam Cross Road | Rs 19,800 |
| Contour Road EWS | Rs 19,700 |
| Srirampura Second Stage | Rs 24,000 |
Conclusion
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Also read: Hyderabad Real Estate Market: Demand in Sales of Villas, Residential Homes