Karnataka Govt Considers Revising Property Valuations Amid Stark Market Disparities

Quick Summary

• Karnataka’s Stamps and Registration department plans to revise the guidance value of properties due to a significant gap between guidance value and market value. This gap is as high as 60% in several urban centres and even up to 10 times in certain areas near Bengaluru.
• The last revision of the guidance value was carried out in October 2023, despite annual mandates for updates.
• A GIS-based valuation process will be implemented to close the revenue collection gap caused by undervaluation.
• The revision aims to increase government revenue and curb black money exchanges, which occur due to mismatches between market prices and official guidance values.
• Farmers might benefit from higher compensation rates for land transactions based on elevated guidance values during acquisitions or sales.
• New criteria for estimating enhancement are being discussed, including variations between urban sites, agricultural land, proximity to major roads or highways, apartments, row houses, villas, etc., with consideration for localities’ market trends.
• Digital stamps are being proposed as a mechanism to improve transparency by limiting under-valuations associated with stamp paper used in non-registration document categories.
• policy changes like A khata approval of private roads may lead to increased property transactions statewide – possibly impacting over one crore properties across rural and urban areas.

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