About two months ago, the Department of Stamps and Registrations in Karnataka hiked the guidance value by 5% to 25%. A move to meet the revenue targets for the current fiscal. The result? Buying a home got more expensive in Bangalore.
Ever wondered what is guidance value and how it impacts the property prices? Let RoofandFloor help you.
The classic definition
In simple words, guidance value is the base price of properties in a particular locality, which is fixed by the state government. A real estate developer cannot sell property below this fixed price. For the state government, it is the major source of revenue.
In some states, it is called circle rates.
There are two types of guidance value. First is the land value, which is only for the plotted developments. The other one is the composite value, which is for the constructed properties.
The factors impacting guidance value
Guidance value for a locality is derived based on various parameters like the population, social infrastructure, real estate development, among others. Thus, for a well-developed locality, the guidance value will always be high.
For instance, the base guidance value of your property is Rs 3,500 per sq. ft. and the super built-up area is 2,000 sq. ft. In this case, the value of your super built-up area will be Rs 70 Lakh (Rs 3,500 * 2,000)
Number of floors
Interestingly, the guidance value differs from unit to unit in a project. The base value is the same until the fifth floor of the building. However, it increases as you move upwards. Thus, an apartment on the fifth floor will cost you less when compared to the one on the tenth floor.
Let’s retake the same example and assume that your property is on the ninth floor. In this case, an additional 2% will be added to the total value of your super built-up area. This will amount to Rs 71.40 Lakh (Calculated as Rs 70 Lakh+2% of Rs 70 Lakh).
The amenities
The amenities in a residential project in Bangalore are broad categories into 14 categories. These include:
1. Clubhouse, community hall, conference hall, party hall, card room, reading room, library, banquet hall, party area, party lawn, and similar types of amenities.
2. Jogging track, running track, cycling track, walking track, pebble pathway, reflexology path, and same kinds of amenities.
3. Children play area, children game area, garden, water body, decorative pool, plantation garden, pits, barbeque, creche, landscape area, foundation, and similar types of amenities.
4. Canteen, mall, commercial space, ATM, bank, hopcoms, Nandhini milk outlet, provision store parlour, cafeteria, supermarket, plaza, and similar types of amenities.
5. All kinds of an outdoor play area, badminton, tennis, basketball, volleyball, baseball, cricket, football, hockey, and similar types of amenities.
6. All kinds of indoor game area, squash, snooker, table tennis, carom room, indoor games area, and same kinds of amenities.
7. Swimming pool indoor, kids pool, wading pool, aqua gym, and similar types of amenities.
8. Cargo lift, elevator, mechanical lift for the car park, high-speed elevator, and same types of amenities.
9. Surveillance of common area, security with video surveillance intelligent security, motion sensor-based lighting multi-camera security, CCTV, gated community, intercom, Wi-Fi, video conference facility, generator, UPS, Kiosk, visitor tracking system, and similar types of amenities.
10. Helipad and golf field.
11. An outdoor amphitheatre, open-air theatre, open stage, and same kinds of amenities.
12. A clinic, Ayurvedic parlour, massage parlour, beauty parlour, spa, aerobics, yoga meditation, unisex parlour, steam & sauna Jacuzzi, gym, day care centre, health club, and similar types of amenities.
13. Indoor amphitheatre, dance and Karaoke hall, drama stage, home theatre.
14. Home automation, smart home, IP door lock, prepaid power supply, piped cooking gas supply, gas bank, and gas detector.
Now, if the project has five or more categories of amenities, the guidance value increases.
For your flat on the ninth floor, let’s assume that the project has six groups of amenities. Then the guidance value (inclusive of amenities) will be about Rs 72.47 Lakh. (Calculated as 71.40 Lakh+1.5% of 71.40 Lakh).
Know the exemptions
The following two groups are not included under the 14 categories listed by the government:
• Rainwater harvesting, solar power, solar water heater, fire prevention, green building, and similar types of amenities
• The sewage treatment plant, solid waste management, individual garbage chute, reflective roofs, water recycling/reuse plants
Parking
Last comes your parking space. The number of cars you own is multiplied by the car parking guidance value, which is calculated based on the total property value. The cost of car parking is:
Continuing the same example, let’s assume that you have two covered car parking. Now, your property’s guidance value will be about Rs 76.47 Lakh. (Calculated as Rs 72.47 Lakh+ 4 Lakh {2 Lakh*2Lakh}).
