Guidance Value (GV) is the minimum value below which no property transactions can be carried out. The minimum value for the properties is calculated on several parameters by the respective city authorities, including property usage and its location. The Stamps and Registration department keeps an account of the Guidance Value in Bangalore.
Also termed as Ready Reckoner (RR) rate or Circle rate in other States, Guidance Value in Bangalore is regulated by the Department of Stamps and Registration, Karnataka. Guidance Value is derived on both land parcels and constructed properties. In case of plots, the value is computed on the basis of the available land area excluding any constructed property. On the other hand, value assessed for the constructed properties including the land is termed as composite value.
Stamp duty charges and registration fees are calculated on the Bangalore Guidance Value, which are considered as the primary source of revenue for the Karnataka government. In short, it is the minimum value that a homebuyer has to pay for a property. However, there is no limit to the maximum property price (market rate) at which a property is sold. The market rate is a final price that a homebuyer pays for a property including amenities and other infrastructure. Evidently, market rate of a property is higher than the Guidance Value.
For instance, if the market price of a property in a particular area is Rs 10,000 per sq ft and the Guidance Value is fixed at Rs 7,000 per sq ft by the Revenue Department, then the homebuyer has an option to register the property at a rate anywhere between Rs 7,000 per sq ft and Rs 10,000 per sq ft.
But, in case, if a property carries the market rate of Rs 5,000 per sq ft, and the Guidance Value is rated at Rs 7,000 per sq ft, a homebuyer cannot register the property below Rs 7,000 per sq ft.
To diminish the gap between the two, the State government revises the Guidance Value annually. The revision in values helps the government generate higher revenue through stamp duty and registration fees. Reducing the gap between Guidance Value and the market rate also helps curb the black money in circulation in the realty sector. Any upward revision in Guidance Value results into an increase in the market price of the property.
How to calculate Guidance Value in Bangalore?
The Stamps and Registration department has launched an online platform, KAVERI, where you can compute the Guidance Value in Bangalore in 2019.
Given below are the steps to compute Guidance Value in Karnataka –
- Go to the KAVERI website
- On the webpage, you will get two search options – Basic Search and Advanced Search
- Now, you have to select ‘District’ from the drop-down provided
- Enter three characters in the ‘Area Name’, and the system would suggest results matching your inputs. Select your Area.
- With this, you will get more options to choose from – Property Usage Type, Total Area and Measurement Unit.
- In the Advanced Search mode, you will need to furnish extra details such as Registration District and SRO Office.
In Bangalore (Urban), there are 42 Sub-Registrar Offices for assessing and regulating Guidance Value. For rural areas, the State government has set up five Sub-Registrar Offices.
List of Sub-Registrar Offices in Bangalore (Urban)
|Rajajinagar District||Basavanagudi District||Shivajinagar District||Gandhinagar District||Jayanagar District|
|Peenya||Attibele||KR Puram||Kacharakanahalli||Rajarajeshwari nagar|
List of Sub-Registrar Offices in Bangalore (Rural)
If you are planning to buy a new property in Bangalore, it is advisable to know about the Guidance Value in advance to make informed buying decision. The value would remain same for all categories of buyers including male, female and joint property owners (male and female).