Land prices set to move both ways

Land prices set to move both ways
Govt Will Revise Guidance Value Before The End Of Year
The Times of India

Bangalore: The guidance value of properties in the city is set to undergo a revision. This means prices will either rise or go down depending on the area. Coming into effect by the yearend, a minimum 30% increase in guidance value is expected.
The revision was announced by the finance minister in the budget speech. The central valuation committee has already started the revision exercise. The previous revision in October 2005 saw an increase of 40-110%. The guidance value of commercial properties was revised by 30-40% more than that of residential properties.
According to industry sources, real estate prices have been soaring, especially in peripheral areas. Investors have been grabbing agricultural land, after the high court quashed the ban on registration of properties on nonconverted agricultural lands. With properties within the city now beyond the reach of the middle class, the demand for farmland is on the rise. Consequently, the market value in some areas has gone way beyond the guidance value. “This year’s revision will also take care of such areas. While value of properties in prime localities will further shoot up, there will be a downward revision in some areas,’’ sources explained.
The revision will also have separate guidance value for apartment complexes, depending on quality of construction, facilities offered and location. So the value of a premium apartment with marble flooring in Cox Town would be Rs 2,200/sqft while it could be Rs 1,220/sqft for ordinary apartments in the same locality.
But only when development takes place, the market value of properties will shoot up. For example, land in Anjanapura Layout, Kengeri, was priced at Rs 300 per sqft last year; it is more than Rs 1,200 per sqft now. The subregistrar’s value is Rs 650 per sqft. Agricultural land here is now Rs 60 lakh per acre as against Rs 10 lakh two years ago.