BANGALORE: Bangaloreans, prepare for a shock: Starting Thursday, the guidance value — official cost of land — in the city will go through the roof.

As per a final notification issued by the government on Wednesday, the cost of residential sites has been increased by 50%, commercial properties by 60% and industrial properties by 25%. The justification given for this is: the unprecedented growth seen by the IT city and the proportionate increase in the value of land.

According to property developers, the hike means the registration duty paid to the government will go up. Farooq Mahmood, a real estate developer, said: “The hike encourages undervaluing of properties. Most formalities during registration of properties will take place backdoor. The price rise is a disadvantage to both land developer and buyer.’’

The central valuation committee (CVC) of stamps and registration department has specifically also looked at posh flats and apartments.

Flats with roofed car parking facilities will have to shell out an additional Rs 70,000,while those sans roof will pay Rs 50,000. “Guidance value for flats with facilities of open terrace, garden area and executive usage areas has been hiked to 25%,’’ a revenue official explained. If that’s not enough, there’s a shocker to shopping malls too: with malls mushrooming, government has decided to hike land rates by 30%. And prized corner sites have to pay an additional 10% over and above the hiked rates. Officials maintained that such a hike was long pending.

“We have taken every care while revising values. It is done according to the merit of the properties,’’ sources said. A few months back, the government had upwardly revised the guidance value for Bangalore Rural district.
Source:Times of India 19 Apr, 2007
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