Karnataka to Revise Property Guidance Value from April 1, Transactions Likely to Get Costlier

Karnataka is preparing to revise the guidance value of land and buildings from April 1, a move that is expected to push up property transaction costs across the state. The proposed revision will directly impact stamp duty and registration charges, making both residential and commercial property deals more expensive.

Guidance value, which is the minimum value fixed by the government for property registration, serves as the benchmark for calculating stamp duty. Any upward revision typically results in higher transaction costs for buyers. Officials indicated that the revision is aimed at aligning government notified rates with prevailing market prices in several urban and semi urban regions where property values have seen steady appreciation.

The move is likely to have a significant impact in cities such as Bengaluru, Mysuru, Mangaluru and other fast growing urban clusters where demand for housing and commercial space remains strong. Industry experts believe that while the increase may temporarily accelerate registrations before the new rates come into effect, the overall demand momentum is unlikely to weaken in the long term.

Real estate developers say the revision reflects market realities, particularly in micro markets that have witnessed infrastructure upgrades, metro connectivity expansion and increased investor interest. However, homebuyers may face additional financial pressure as higher guidance values translate into increased upfront costs during registration.

The state government is expected to notify the revised rates shortly, with implementation scheduled from the beginning of the new financial year. Analysts note that such revisions also help enhance state revenue collections through higher stamp duty inflows.

With Karnataka continuing to attract investments in technology, manufacturing and services, the real estate sector remains a key economic driver. The guidance value revision marks another structural step that will influence pricing dynamics and transaction trends in the months ahead.