Karnataka Likely to Hike Property Guidance Value by Up to 15 Percent

Karnataka is preparing for a revision in property guidance values across the state, with officials indicating a likely increase of 12 to 15 percent. The exercise comes after a gap of two years and is expected to be implemented by April. The move is aimed at bringing government notified property rates closer to prevailing market prices while strengthening stamp duty revenue collections.

According to revenue department sources, the process of tabulating and reviewing existing guidance values has already begun. Field inspections are expected to follow as authorities assess transaction trends, demand patterns, and price escalation across districts. The last revision was carried out in 2023, while the previous update before that took place in 2019.

Officials say the proposed hike will be moderate compared to earlier revisions, which saw increases of up to 30 percent in certain locations. The state is also under pressure to meet revenue targets, particularly as property registrations have shown signs of slowing despite steady price growth.

Data indicates that while Bengaluru continues to account for nearly 60 percent of the state’s stamp duty revenue due to higher property values, the overall number of registrations has not grown proportionately. This trend has prompted the government to reassess notified values in order to better reflect market realities.

The guidance value, also referred to as the government notified value, plays a crucial role in property transactions as it determines the minimum rate for stamp duty and registration charges. A revision is expected to have a direct impact on homebuyers, developers, and investors.

With real estate prices steadily rising and infrastructure expansion continuing across Karnataka, the upcoming revision is seen as both a revenue measure and a market correction exercise.