Karnataka mulls 35% hike in property guidance values

Bengaluru: The Karnataka government has reportedly begun preparations to increase the guidance values of immovable properties by up to 35 per cent, even as the state faces a severe drought that has affected livelihoods and agricultural incomes.

The Department of Stamps and Registration has held several rounds of district-level meetings with officials to discuss a revision of property values. A proposal to increase guidance values and stamp duty is being prepared, according to the information available.

The government last revised property values in October 2023. Registration charges were subsequently increased by two per cent in the following years. The proposed revision is expected to boost government revenue, but it could also increase the financial burden on property buyers, particularly low- and middle-income families. With prices of essential commodities already putting pressure on household budgets and rainfall deficits creating uncertainty over farm incomes, a hike in property values during the drought could attract public criticism.

Property prices have risen sharply in urban and rural areas in recent years. However, the existing system for determining the values of agricultural land and residential sites has reportedly faced criticism over inconsistencies and the lack of adequate differentiation between locations and land categories.The uniform application of valuation norms to urban, semi-urban and rural properties has also raised concerns. Agricultural land used for farming, for instance, may have different economic characteristics from land developed for residential layouts, prompting calls for a more appropriate valuation framework. The proposed revision could increase the government-assessed values of different categories of agricultural land, including bagayathu, thari and kushki land, as well as residential sites.

Public demands have emerged for special classifications and concessions to protect low- and middle-income families from an excessive financial burden. Supporters of such measures argue that affordable housing remains out of reach for many families and that property valuation policies should take their economic circumstances into account.

The proposal is still under preparation, and the final extent and timing of any revision have not been confirmed in the information provided.

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The Hans India