What is Guidance Value?

The minimum value at which a property can be registered is its guidance value, which is published by the Department of Stamps and Registration of every state, every year

The minimum value at which a property can be registered is its guidance value. In other words, it is the Ready Reckoner value of the property. The Department of Stamps and Registration of every state publishes the guidance value of the property, and this varies from locality to locality. It also differs from one building to another. While the guidance value is among the largest source of revenue for the state, any increase or any decrease in value can have a direct impact on the cost of the property. The stamps and registration department revises the value from time to time and much study goes into keeping the rates as close as possible to the market value of properties so as to avoid any instances of black money and cash transactions which can affect the revenue.

 

Basic facts about guidance value

  • Guidance value is like a fixed price of the property. It cannot go below this value.
  • If you buy a property below the guidance value, you will still need to register it at the guidance value.
  • If the sale of the property has happened at a higher value than the guidance value, registration takes place as per the higher value.
  • Different states use different terms for guidance value such as Ready Reckoner rates or circle rate.
  • A well-developed and established locality may have a higher guidance value. The same value will be lower in areas that are early-on in the development cycle. Similarly, agricultural land will have
  • Guidance value is applicable on apartments as well as plotted developments.
  • Note that guidance value is just a benchmark. A home buyer cannot persuade the property seller to sell at the guidance value.

Now that you are familiar with the term, let us see how such values are calculated. Let’s take the example of Bengaluru.

 

How to calculate guidance value of property in Bengaluru?

Step 1: Visit the Kaveri website at kaverionline.karnataka.gov.in

 

What is Guidance Value?

 

Step 2: Opt for basic or advanced search.

Step 3: Type in details of district, area name, property usage type, property type, total area and measurement. Other fields will be auto-populated and you will be shown a valuation of the building rate.

Step 4: Other details that you may want to enter are about the construction type, annexure rules, parking type etc. This will throw up a total valuation of the property.

 

What is Guidance Value?

 

If you are opting for an ‘advanced search’, you will have to enter extra information pertaining to the registration district and the SRO Office.

 

Explainer: How does guidance value work?

Jairaj Reddy decides to buy a property with a market value of Rs 6,500 per sq ft. The guidance value in that area is Rs 5,000 per sq ft. Home buyers can register the property at a rate between Rs 5,000-6,500 per sq ft.

Now, suppose it was the other way around. That is, if the property was at the selling price of Rs 5,000 per sq ft but the guidance value was Rs 6,500 per sq ft, Reddy would still have to register it at Rs 6,500 per sq ft, because it is the minimum value.

 

Latest developments in Bengaluru on guidance value

No hike in guidance value in 2020

In 2019, the Karnataka government had hiked guidance value in the range of 5-25 per cent. This year the authorities have confirmed that there will be no further hike till 2021. Usually the new guideline values come into force from January 1 every year, but going by the derailed momentum in the sector, the authorities have decided not to put added pressure on home buyers. The authorities also claim that their revenue has significantly increased encouraging them to take such a friendly decision.

 

Undervaluation of property causes loss of over Rs 400 crores

Both, home owners and real estate developers, have been undervaluing the property. However, this always has a negative effect. In Bengaluru, such undervaluation and discrepancies have cost the state a loss of lakhs of crores. Underestimation of properties was seen in 13,533 sites and the total underestimation was of about Rs 3,167 crore from which a revenue of Rs 190 crore was expected.

 

How does lower guidance value benefit?

Both, home buyers and sellers, can benefit if guidance value is lower. Buyers can benefit because it means relatively cheaper property and less stamp duty and registration charges. For a seller this means lower capital gains tax.

 

Guidance value of park-facing properties

The revised guidelines in 2019 enabled an additional 10% rise in Guidance Value for properties facing parks.

 

Guidance value of road-facing properties

Guidance Value of properties facing roads have increased by 25% as compared to values in 2017. There will be no further hike in 2020.

 

Guidance value of higher-floors, amenities, developed locales

Guidance value is higher for properties starting from the sixth floor. Similarly, amenities that a project provides are also classified by the state. If you are provided with over five categories of lifestyle amenities (swimming pool, sports courts etc) you will be paying a higher value.

Luxury locales also have a higher guidance value.

 

Current guidance value in Bengaluru

 

AREARATES (PER SQ MT)
VANI VILAS MARKET TO D. BANUMALAH CIRCLE ON SAYYAJI RAO ROADRS 32,000
BANUMALAH CIRCLE TO K.R. CIRCLERS 68,200
K.R. CIRCLE TO AYURVEDA HOSPITAL CIRCLERS 1.15 LAKH
AYURVEDA HOSPITAL TO RMC CIRCLERS 49,100
RMC CIRCLE TO HIGHWAY CIRCLERS 32,600
KUMBARAKOPPAL MAIN ROADRS.1,29,000
KUMBARAKOPPAL CROSS ROADSRS 9,600
KUMBARAKOPPAL INNER CROSS ROADSRS 9,900
KUMBARAKOPPAL COLONYRS 6,500
KUMBARAKOPPAL SOUTH SIDERS 13,000
GOKULAM MAIN ROADRS 38,400
GOKULAM CROSS ROADRS 19,800
GOKULAM IST & 2ND STAGERS 25,000
GOKULAM 3RD STAGERS 28,000
GOKULAM 4TH STAGERS 20,000
CONTOUR ROAD EWSRS 19,700
KARNATAKA SLUM DEVELOPMENT BOARD HOUSESRS 8,600
BOGADI 1ST & 2ND STAGERS 28,000
JANATANAGARRS 11,800
SRIRAMPURA 1ST STAGERS 23,000
SRIRAMPURA 2ND STAGERS 24,000
METAGALLI MAIN ROADRS 18,300
HALE OORURS 8,500
AMBEDKAR COLONYRS 3,500
B.M SRI NAGAR MAIN ROADRS 10,100
B.M SRI NAGAR CROSS ROADRS 8,300
KARAKUSHALANAGARRS 5,400

 

Guidance value of agricultural land on per acre basis

AGRICULTURE LAND (KUSHKI) AT AJJAYYANAHUNDIRS 51 LAKH/ACRE
THARI LAND AT AJJAYYANAHUNDIRS 53 LAKH/ACRE
HOUSE SITES AT AJJAYYANAHUNDIRS 4,750/SQ.MT
HOUSE SITES APPROVED BY THE DEVELOPMENT AUTHORITYRS 10,900/SQ.MT
AGRICULTURAL LAND (KUSHKI) AT CHOWDAHALLIRS 30 LAKH/PER ACRE
AGRICULTURAL LAND AT AYARAHALLIRS 8.5 LAKH/ACRE
THARI LAND AT AYARAHALLIRS 9 LAKH/ACRE
GOVT UTHANAHALLI (MUDA LIMITS)RS 32 LAKH/ACRE
INAM UTHANAHALLIRS 8 LAKH/ACRE
AMCHAWADI VILLAGE IN YELWAL HOBLIRS 3.50 LAKH/ACRE
ANANDURRS 20 LAKH/ACRE
YELWAL HOBLI MUDA LIMITS, MYSURU-HUNSUR ROADRS 35 LAKH/ACRE
ANAGANAHALLI UNDER MYSURU WEST OFFICE LIMITSRS 8 LAKH/ACRE
ARASINAKERERS 5 LAKH/ACRE
UDBUR (MUDA LIMITS)RS 22 LAKH/ACRE
KADAKOLARS 35 LAKH/ACRE

 

Guidance value in prime areas

CUNNINGHAM ROAD (CHANDRIKA HOTEL TO BALEKUNDRI CIRCLE)RS 2,78,600
LAVELLE ROADRS 2,07,900
M.G.ROAD, BRIGADE ROAD, RESIDENCY ROADRS 1,95,500
12TH MAIN, HAL 2ND STAGERS 1,11,800
DEFENSE COLONY, INDIRANAGARRS 1,71,800
CMH ROAD, 1ST TO 12TH CROSSRS 1,43,200
9TH MAIN, JAYANAGARRS 3,87,500
DOLLARS COLONY, RMV 2ND STAGERS 1,84,000
SAMPIGE ROAD, MALLESHWARAMRS 2,05,000
SADASHIVANAGAR (C.V. RAMAN AVENUE TO BHASHYAM CIRCLE)RS 2,58,200
SANKEY TANK ROADRS 2,70,000
DR. RAJKUMAR ROADRS 1,61,500
ESI HOSPITAL ROAD, RAJAJINAGARRS 1,10,000
NANDIDURGA ROADRS 1,75,000
BANNERGHATTA MAIN ROAD (HOSUR ROAD TO DAIRY CIRCLE)RS 1,53,000
VITTAL MALLYA ROADRS 2,08,900

 

Registration offices in Bengaluru-Urban (zone-wise)

Bengaluru eastBengaluru westBengaluru northBengaluru south
Indiranagar, BDA Complex, Bangalore 560050.,

Telephone: 25634517

No.488 B-Block, Karnataka Industrial Area Development Board Building, 14th cross 4th Phase, Peenya 2nd Stage, Bangalore 560058.

Telephone: 28366091

Sree Rundhreswara Chambers, Yelahanka New Town, Bangalore 560064.

Telephone: 22959367

SLN complex, Near RTS Bus Stand, Mysore Road, Kengeri, Bangalore 560060.

Telephone: 28484159

Domlur, BDA Complex, Bangalore 560038.,

Telephone: 25352907

Sri Rameshwara Temple Commercial Complex, Near Kannada Sahithya Parishat, IIIrd Main Road, Chamarajpet. Bangalore 560018.

Telephone: 26606641

K.R.Puram, Near Santhemaala, Bangalore 560036.

Telephone: 22959345

4th Block, Jayanagar, 12th Main Road, Near Jayanagar Complex, Bangalore 560041.

Telephone: 22959347

National Highway, Manjushree Chambers, K R Puram. Bangalore 560036,

Telephone: 28472677

19/B, 2nd floor, V.K.Iyengar Road, Gandhinagar, Bangalore 560009.

Telephone: 22959353

No.69. Cholanayakanahalli, R.T.Nagar Post, Bangalore 560032.

Telephone: 22959322

Taluk office premises, Mini Vidhana Soudha, Anekal, Bangalore 562106.

Telephone: 27841096

No.7402, 9th ‘A’ Main. II Cross, I block, HRBR Layout, Kalyan Nagar, Bangalore 560043,

Telephone: 22959335

Near Vijayanagara Bus Stand, 2nd Main Road, Srirampura, Bangalore 560040.

Telephone: 22959349

No.13, Laggere Main Road, Andanappa Building, Parvathi Nagar Bus Stand, Bangalore 560058.No.1105-9C, Begur Village,

Bangalore 560019.

Telephone: 22959328

No.4, Jatar Circle Road, Whitefield, Bangalore 560066,

Telephone: 22959342

5th Block, No 1034., Near Dhobi Ghat, Rajajinagar. Bangalore 560010.

Telephone: 22959350

No.25, D.M.Chambers, 3rd stage, RMEL Road, Jawaharlal Nehru Road, RajaRajeshwari Nagar, Bangalore 560098. Telephone: 22959329No.1, Madanayakanahalli, Dasanapura Hobli, Bangalore.

Telephone: 22959325

RBMP Building, Near Ulsoor Lake, Tank Bund Road, Bangalore 560022.

Telephone: 22959369

No.40, IInd Stage, behind BDA Complex, Block I, Nagarabhavi, Bangalore.

Telephone: 22959315

Amrutha Nagara, Konanakunte.

Bangalore 560062.

Telephone: 22959330

Additional District Registrar, BDA Complex, Kumara Park West, Bangalore 560001.

Telephone: 22959343

1st floor, B M Complex, Mustandra Road, Opp. Dharmarayaswamy Temple, Varthur, Bangalore 560087.

Telephone: 22959198

No.11, I Main Road, Guttahalli,

Bangalore 560003.

Telephone: 22959357

No.4, Survey No. 33/4A, B H Road, Dasanapura Dakhle, Devannapalya, Bangalore North Taluka.

Telephone: 22959326

No.46, Next to Anjan Theatre, Magadi Road, Kempapura Agrahara, Bangalore 560023.

Telephone: 22959367

No.111, 9th Main Road, 3rd stage, Pillanna Garden, Kacharakanahalli, Bangalore 560045.

Telephone: 22959321

H C Puttaswamy Layout, Hesaraghatta, Bangalore North Taluk. Bangalore 560088.

Telephone: 28466100

Bangalore South Taluka, APCM Society, Kanakapura Road, Banashankari, Bangalore 560070.

Telephone: 22959331

NH-7, Opp. Police Station, Bellary Road, Bangalore North Taluk. Bangalore 562157.

Telephone: 28467474

No.1943, Tavarekere Kengeri Road, Tavarekere, Bangalore 562130.

Telephone: 28430714

No.70, 5th Main, Ganganagar, Bangalore 560 032.

Telephone: 22959359

No.430, Anna Building, Bommasandra Industrial Area, Hennagara Gate, Hosur Main Road, Attibele, Bangalore 560099. Telephone: 27836583
No.51/C, 3rd Main Road, Lorry Stand Godown Layout, APMC Yard, Yeshwanthpur, Bangalore 560022.

Telephone: 22959366

No 459/39/2, Bannerghatta Village, Opp. Police Station, Bannerghatta, Bangalore 560083. Telephone: 27828207
No.167-168, B T M Layout I Stage, Tavarekere Main Road, Bangalore 560076. Telephone: 22959360No.2255, Karuna Complex, Sahakara Nagara, Rajarajeshwari Road, Bangalore 560092.

Telephone: 22959341

No.50/1. Church Street, Bangalore 560001.

Telephone: 22959354

 

Registration offices in Bengaluru-Rural (zone-wise)

Bengaluru eastBengaluru northBengaluru south
Mini Vidhana Soudha, Hoskote, Bangalore Rural District 561203.

Telephone: 27934525

Taluk Office Premises. Devanahalli, Bangalore Rural District 562110.

Telephone: 27681021

Mini Vidhana Soudha Building, Magadi, Bangalore Rural District 562120.

Telephone: 27746750

Mini Vidhana Soudha Taluk Office, Doddabllapura, Bangalore Rural District 561203.

Telephone: 27626876

Taluk Office Premises, Mini Vidhana Soudha Building, Kanakapura, Ramanagar District 571511.

Telephone: 27255412

Mini Vidhana Soudha Building, Nelamangala, Bangalore Rural District 562123.

Telephone: 27724110

Taluk Office Premises, Old B M Road, Ramanagar, Bangalore Rural District 571511.

Telephone: 27276270

Taluk Office Premises, B M Road, Channapatna. Bangalore Rural District 571501.

Telephone: 27255412

 

FAQs

Should I register property at guidance value or market value?

You can register the property at the guidance value if it’s lower than the selling price of the property. But if your property cost you less than the guidance value, you cannot choose to register at the lesser value. Guidance value is the minimum benchmark.

Why are there different Guidance Values of a property in the same city?

A number of reasons determine how much the guidance value is. For example, guidance value depends on the floor, building, locality, amenities, parking space, etc.

Where do I find information regards guidance value in Bengaluru?

You can approach the respective sub-registrar office for more details or refer to the numerous online websites for related information.

 

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