Bengaluru Property Prices Likely To Go up from October 1, Here’s why

Bengaluru, India's Silicon Valley, is expected to see an increase in property prices starting early next month as the state government is mulling an increase in 'guidance value'.

The "Guidance value" of properties, which is the minimum selling price determined by the government depending on location and property type, according to a recent announcement by the Karnataka state government on September 19.

The revised advisory value is expected to take effect on October 1, according to Krishna Byre Gowda, the Karnataka Revenue Minister.

Depending on the region, a 20-30% average increase in property prices can be anticipated. The rise might be as much as 50% in places with a high concentration of IT areas such as Electronic City.

Gowda noted that the revised rate has been increased by 20 to 50% in locations where the market pricing is much higher than the guideline rate. Especially noteworthy is the fact that the market rate in Electronic City is around 500 times greater than the current guiding figure.

Following Bengaluru, other Karnataka districts would also experience the same changes. The guiding value of each region will be increased from 0 to 50%, and the alterations will be implemented "Case-by-Case" by the government.

According to research by Anarock Research published in April 2023, average rent prices have increased by double digits in most major cities over the previous year, with Bengaluru leading the pack.

Four posh areas of Bengaluru have had the most increases in residential rental values, which have increased by around 25%. Thanisandra Main Road and Marathahalli Outer Ring Road in Bengaluru experienced the highest year-over-year increases, both seeing a 24% increase, according to the survey.