Always a Flipside

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Karnataka is mulling the reduction of guidance value of properties across the state, elating developers and aspiring homebuyers, thus providing more momentum to the real estate sector.

Guidance What?

A ‘guidance value’ is the minimum selling price of any property that a state government determines based on the locality and nature of the construction, if any. A downward revision will mean lower property prices and registration charges.

Usually, state governments are supposed to revise this guidance value every year. This was last done in January 2019, when Karnataka state announced a value hike in the range of 5 to 24 per cent. Due to the pandemic, a revision was not done in 2020 and is expected to be lowered for housing category once the survey and considerations are completed by December 2021.

A Good Feeling

After BBMP’s recent property tax mess caused by erratic zonal classifications, this announcement has added to the positive mood.

“Covid-19 has hit the businesses hard. I've been receiving many requests from various stakeholders on reducing the guidance value. So, I've asked the officials to give me a report by December on decreasing the guidance values across the state," revenue minister R. Ashoka said to the press. 

BTW, he also added, “I have also asked officials to look at the possibility of hiking the guidance value along national, state highways and industrial corridors,” endorsing what your father told you, – that there’s always a flipside to the good stuff.