Karnataka government proposes to slash guidance value of properties

08 Sep 2021 CW Team

Last week, revenue minister R Ashoka said that the government was considering revising the guidance value by December and that any reduction would be implemented across Karnataka, with the exception of industrial zones and highway rest areas.

The minimum selling price of a property is known as the guidance value. It is determined by the government based on the location and type of structure. Property prices will fall as a result of a downward revision.

The government is required by law to revise the value every year. It announced a hike in the range of 5% to 24% in January 2019.

KP Mohanraj, inspector general of registration and commissioner of stamps, told the media that because of the pandemic, the guidance value could not be changed in 2020. They've started the process because the government wants to take it up this year.

There have long been calls to lower interest rates, which are extremely high in some areas and drive up property prices. A property on MG Road, for example, is estimated to be worth more than Rs 1.9 lakh per square metre. It costs Rs 2 lakh per sq m on Lavelle Road.

According to real estate industry representatives, certain properties are being undervalued and sold as a result of the Covid-related slowdown.

If the guidance value is reduced, it will have an impact on property tax.

Lower guidance values are expected to increase the number of property registrations, resulting in increased revenue for the government. More than 2.1 lakh documents were registered in August, bringing in Rs 1,142 crore in revenue, compared to Rs 969 crore or 1.7 lakh documents in 2020 and Rs 911 crore or 1.7 lakh documents in 2019.

Image Source

Also read: Navi Mumbai municipal corp identifies 119 properties for tax dues

Developers and would-be homebuyers have been encouraged by discussions in the state government about lowering the guidance value of properties, providing additional momentum to the real estate sector, which is showing signs of recovery following the second wave of Covid-19. Last week, revenue minister R Ashoka said that the government was considering revising the guidance value by December and that any reduction would be implemented across Karnataka, with the exception of industrial zones and highway rest areas. The minimum selling price of a property is known as the guidance value. It is determined by the government based on the location and type of structure. Property prices will fall as a result of a downward revision. The government is required by law to revise the value every year. It announced a hike in the range of 5% to 24% in January 2019. KP Mohanraj, inspector general of registration and commissioner of stamps, told the media that because of the pandemic, the guidance value could not be changed in 2020. They've started the process because the government wants to take it up this year. There have long been calls to lower interest rates, which are extremely high in some areas and drive up property prices. A property on MG Road, for example, is estimated to be worth more than Rs 1.9 lakh per square metre. It costs Rs 2 lakh per sq m on Lavelle Road. According to real estate industry representatives, certain properties are being undervalued and sold as a result of the Covid-related slowdown. If the guidance value is reduced, it will have an impact on property tax. Lower guidance values are expected to increase the number of property registrations, resulting in increased revenue for the government. More than 2.1 lakh documents were registered in August, bringing in Rs 1,142 crore in revenue, compared to Rs 969 crore or 1.7 lakh documents in 2020 and Rs 911 crore or 1.7 lakh documents in 2019. Image Source Also read: Navi Mumbai municipal corp identifies 119 properties for tax dues

Infrastructure Energy

17 Dec 2025

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Real Estate

17 Dec 2025

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world�..

Real Estate

17 Dec 2025

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..