Bangalore property and rental scene has become dearer with the new property tax and valuation guidelines issued by BRUHAT BANGALORE MAHANAGARA PALIKE. The BBMP issued a GO making it effective from April 1, 2016 with a new guidance value of property that is increased by a steep 20% increase for owned building and 25% increase for commercial buildings. While the BBMP defended the move saying last time the hike was in 2007, builders and buyers are up in arms at the steep hike.
Here’s a glance at the hike in key areas of Bangalore:
Revised Rates in sq/ft
Rs 14,158 Legacy Cataleya, Cunningham Road
Rs 10,312 Coles Road
Rs 12,904 South End Road
Rs 16,504 Avenue Main Road
Rs 12,077 Ballari Main Road (after Hebbal flyover)
Rs 22,380 UB Towers,
Vittal Mallya Road
For full list, see:
While BBMP is upright about its new guidance valuation, builders are upset over the move as it increases all property rates in Bangalore by 20 to 25 percent, irrespective of inflation. While infrastructure is turning negative with compulsory power cuts plaguing the city, even roads and traffic have been an eye-sore in the city, leaving aside a nagging sanitation as most roads remain as stinking in Bangalore as they were in 2007.
Bengaluru Secretary of Confederation of Real Estate Developers’ Association of India (CREDAI) said the move to revise guidance values has not been scientific as it is aimed at more taxation than actual valuation of properties. He said the steep hike in vluation "results in artificial increase in prices and hurts genuine property buyers. All this has done is increase the stamp duty on registration, increase property taxes and add more properties into higher zones. I do not think this is the correct approach." Instead of BBMP unilaterally deciding the guidance value, an outside independent authority should do the valuation, he said.
Branding all properties in an area together for tax purpose is unfair as no two properties can go at the same rate. "Values can differ on road width, size of plot, position and many other things. All this has been done only for record keeping. A third party from outside the state would not have vested interest and would assess it objectively,” Suresh said.[tags, BBMP, new guidance value, tax hike, property hike, bengaluru bbmp, property tax hike, builders, credai]