The Guidance Value of a property is one of the most important terms in the real estate industry. The term Guidance Value is widely used in Karnataka. This article focuses on what is guidance value, its real meaning, usage, importance & how to calculate the guidance value.
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What Is The Guidance Value Of A Property?
The Guidance Value or Guideline Value of a property determines the minimum value at which a property is registered in the government records, to impose the stamp duty and the registration charges.
Guidance Value is also called the Ready Reckoner Rate or Circle Rate in other parts of the country (outside Bangalore).
The Department of Stamps & Registration decides the Guidance value.
Once the Guidance Value for a property is confirmed, homebuyers can’t go below that price for property transactions.
To encourage property sales, the government of Karnataka at times announces discounts on the Guidance value in the state.
You can get the guidance value of a specific property online or through the Sub-registrar offices.
The Guidance Value for a particular property is established based on several factors such as :
- Location
The Guidance Value of a property varies according to the location. As compared to a less developed locale, the guidance value in a posh or prime locality will be higher.
- Property Type
The type of property also determines its Guidance value. Commercial, Agricultural, Residential & Industrial, every property has a unique Guidance value.
- Infrastructural Development
Proximity to developed infrastructure, necessary facilities (schools, colleges, hospitals, shopping centers, etc.), transportation hubs, connectivity routes, and many such factors impact the Guidance value of a property.
- Amenities
The types of amenities included in a property also affect its Guidance value.
- Market Dynamics
The Market demand & supply dynamics have a major role in determining the Guidance value. Factors like the real estate market, economic trends, technological advancements, etc.
Difference Between Guidance Value & Market Value
The Guidance Value & Market Value are some of the most important terms used in the real estate industry.
As the Guidance value is the minimum property registration rate, Market Value refers to the term at which the property owner is selling the property.
The Guidance Value is only updated twice a year. On the other hand, the Market Value keeps on varying based on the market, supply-demand dynamics, location, property, facilities, etc.
The Market value cannot be less than the Guidance Value. Also, the homebuyer cannot force the seller to sell the property on its Guidance value.
Example: If the market value of a property is ₹5000 per sq.ft in a particular area and the guidance value determined by the Department of Stamps & Registration is ₹4000 per sq.ft, then the property can be registered at any amount from ₹4000 to ₹5000.
But in a case where the market value of the property is ₹5000, and the guidance value specified by the department is ₹6500, then it’s mandatory to register the property at ₹6500.
Guidance Value Bangalore
The Guidance Value of the property in Karnataka is referred to as the Kaveri Guidance Value.
The Kaveri Guidance Value is also known as the Guidance Value Bangalore.
The Kaveri Guidance Value is the minimum fixed value at which a property should be registered & sold in Karnataka.
The Kaveri Guidance Value is easily available in the Kaveri Online Services Portal, which is a platform that provides current Guidance Value information to both buyers and sellers.
If the Market Value is higher than the Kaveri Guidance Value, then the property can be sold at any price between the Market & Guidance Value, without any extra tax involvement.
If the selling price of the property is less than the Kaveri Guidance Value, then make sure to check the property documents. In such cases, the sellers might be trying to save tax, which is unauthorized.
Importance Of Kaveri Guidance Value
In Karnataka, the Kaveri Guidance Value plays an important role in real estate transactions. Here are some reasons behind its importance :
- Legal Necessity
The Government and the Stamps & Registration Department of Karnataka have mandated the Guidance Value for every property in the state. This minimum registration value ensures fair property transactions.
- Stamp-Duty Estimation
The Kaveri Guidance Value helps in calculating the stamp duty of a specific property and provides honesty & consistency in the process.
- Stopping Tax-Fraud
The Kaveri Guidance value sets a minimum property registration value, which avoids undervaluation of the property & makes sure the property gets its deserving price. This process majorly assists in stopping tax fraud & revenue loss for the government.
- Transparency
The Kaveri online portal can be accessed by anyone who’s looking for the latest updates in the Guidance Value. This improves transparency & decision-making in the transaction process.
- Property tax Evaluation
The Kaveri Guidance Value is used as a reference by the local authorities & administration bodies while evaluating property taxes, municipal charges, etc. This contributes to the revenue generation process as the taxes are imposed based on the property’s evaluated value.
Latest Guidance Value Bangalore
For the last 5 years, the Kaveri Guidance Value was unrevised in Karnataka.
Since October 1st, 2023, the changes in the rates came into effect.
The Guidance value was raised by 10% in places with suitable property rates.
In the case of areas with high market & guidance value, a 25 to 30 percent hike was witnessed in the rates.
The increase in Guidance value for Agricultural Land was around 50%, for project sites it rose to 30%, and for apartments, the hike in value was around 05 to 20 percent.
The Karnataka Government keeps on announcing incentives to promote property sales in the state. On January 2022, a 10% discount was applied to the guidance value and the offer was valid till 31st July 2023.
How To Find The Guidance Value Of Property In Bangalore?
To find out the Guidance Value of your property in Bangalore, visit the kaverionline.karnataka.gov.in website or search “ Know your property valuation” on the web.
If you’re already a member then enter your credentials & login. If not then register first and then login to the website.
Now, select District, Taluka, Town & Village from the dropdown list.
Select the property type, and area according to the measurement and search for the value.
The Guidance Value & other details will appear on your screen.
FAQs
| What is a Guidance Value?
The Guidance Value of a property is the minimum value at which the property should be registered. |
| What are the other terms used for Guidance Value?
Guidance value or Guideline, value is also known as Ready Reckoner Rate or Circle Rate. |
| What factors affect the Kaveri Guidance Value of a property?
Factors like the location, amenities, property type, infrastructure, connectivity, market dynamics, etc. determine the Guidance value of a property. |
| How is the Guidance Value calculated in Bangalore?
To calculate the Guidance Value Bangalore, you can visit the Kaveri online services portal, where you can easily find the guidance value according to the area & property. |
| What is the difference between the Guidance Value and the Market Value?
The Guidance Value is the minimum rate at which the property is registered, while the Market Value is the rate at which a property is sold. |
| Which website is used to calculate the Guidance Value?
kaverionline.karnataka.gov.in is the website used to calculate the Guidance Value in Bangalore. |
| Who decides the Guidance Value Bangalore?
The Department of Stamps & Registration, Karnataka determines the Guidance Value Bangalore. |
| What is the importance of Kaveri Guidance Value?
The Kaveri Guidance Value helps in Legal Requirements, Stopping Tax Fraud, Stamp Duty Estimation, Property Tax Evaluation, etc. |
