Real Estate Prices Hit the Roof

Thursday, April 19 , the dreams of thousands of Bangaloreans went up in smoke, while the dreams of a select few got fired up. That dream home one aspired for in Bangalore, will remain a dream for the vast majority of the homeless, while the lucky few who own a house can’t stop smiling. Months after revising the guidance value of land in Bangalore, the government has once again hiked the official cost of land in Bangalore.

As per notification issued on Wednesday, the cost of residential sites has been increased by 50%, commercial properties by 60% and industrial properties by 25%. The reason for this is the unprecedented growth in the IT city, and the resulting increase in the land value. The notification covers properties in the limits of 33 sub-registrar’s offices. The increase is based on the locality, type and end use of property, type of construction, amenities available, and ranges from 40% to 400%.

While the steep hike in the guidance value has left property developers and prospective buyers fuming, the state government will laugh all the way to the bank, with its coffers enriched by the rise in the registration duty.  Another downside to this is, the possibility of encouraging undervaluing of properties, to avoid paying more stamp duty.

As per the revised guidance values, the most expensive piece of real estate is in the Central Business District (Commercial Street, MG Road, Brigade Road and surroundings), Jayanagar, Koramangala, Indiranagar and Residency Road.

Given below is a bird’s eye view of the present guidance value of real estate in some of the prominent localities in Bangalore (rates given per sq. ft in brackets):

•Commercial Street (Rs 10,000); Brigade Road, MG Road to Residency Road (Rs 8,000); Residency Road to Richmond Road, Indiranagar 100 Feet Road (Rs 7,000); Church Street (Rs 7,500); CMH Road (Rs 5,500);

•Jayanagar – 4th Block, 4th Main Road (Rs 6,000); I Block – (Rs 2,500);
•Basavanagudi – Patalamma Road, South End Circle (Rs 5,000); Mohammedan Block (Rs 1,950); Azad Nagar (Rs 700);

•Lalbagh Road (Rs 4,500); Lalbagh Cross Road (Rs 2,600);

•Malleswaram – 8th Cross (Rs 5,000); Pipeline Road 4th to 10th Cross (Rs 1,800);

•Sadashivanagar – Upper Palace Orchards (Rs 8,000); Lower Palace Orchards (Rs 3,600);

•Rajajinagar – ESI Hospital Road (Rs 4,000); Rajajinagar 5th Block (Rs 1,100);

•KP Extension – Railway Parallel Road – (Rs 5,500); Annaiyappa Block (Rs 2,300);

•Avenue Road – Avenue Main Road (Rs 6,000); Anandappa Road – (Rs 3,000);

•Residential property with Madras roofing, Mangalore tiles, sheets, mud wals and jungle wood – Rs 220 per sq. ft; Residential property with RCC, granite flooring and teak wood – Rs 680 per sq.ft for ground floor, and Rs 600 per sq.ft for first floor. Rate differs for other types of construction on the basis of materials used.

•All open car parking space – Flat rate of Rs 50,000; For covered car parking – Rs 70,000.

•Open terrace/garden area/exclusive usage area in apartments – 25% of site value.

•Commercial property in BBMP, BDA areas and layouts formed by housing co-operative societies is fixed at 40% higher than the value fixed for residential property.