Karnataka's property market is set for a significant shift as the state government raises guidance values by 15–30 percent, effective October 1st. These values determine property transaction costs, including stamp duty and registration fees. Buyers will face a 5.6 percent stamp duty and a 1 percent fixed registration fee. This change, after a five-year hiatus due to COVID-19 and assembly polls, aims to boost government revenue and property market values. Over the past few weeks, a rush of property transactions has prompted extended working hours at sub-registrar offices. The impact will vary by locality, with some areas potentially experiencing up to a 50 percent increase in guidance values.
Karnataka's real estate landscape is on the brink of a significant shift as the state government prepares to implement a substantial 15–30 percent increase in guidance values, officially starting on October 1st. The guidance value, a pivotal factor in property transactions, dictates the calculation of stamp duty and registration fees, making it a focal point for both buyers and sellers. Property buyers should prepare to pay a 5.6 percent stamp duty on the property's value, including cess and surcharge, along with a fixed 1 percent registration fee. This fee structure applies uniformly, regardless of the property's actual selling price.
This guidance value adjustment is not merely a fiscal tweak but a potentially transformative move, expected to have a dual impact. On one hand, it's a revenue booster for the government, enhancing its financial coffers. On the other hand, it's poised to reshape property market dynamics, potentially inflating property values. The backdrop to this revision reveals a unique context. Typically, the stamps and registration departments review and revise guidance values biennially, fine-tuning the property landscape.
However, the disruptive forces of the COVID-19 pandemic and the tumultuous assembly polls necessitated an unprecedented five-year hiatus in this revision cycle. The repercussions of this imminent change have already begun to manifest. Over the past fortnight, a frenzy has gripped sub-registrar offices across Karnataka as property buyers raced against the clock to beat the impending hike. This surge in activity compelled the government to issue a directive, extending office hours until 8 p.m. until the end of the month, in a bid to accommodate the heightened demand.
Advertisement
Facebook
Whatsapp
