Infosys' Murthy Buys Rs 50 Cr Flat In Kingfisher Towers; Know Stamp Duty, Charges On Property In Bengaluru?

India's second largest tech company, Infosys co-founder Narayana Murthy, who has been in the news for his opinion on working hours lately, has just hit the headline once again. This time, Murthy has reportedly bought a 4BHK luxurious apartment in Prestige Kingfisher Towers, located in Ashok Nagar, Central Bengaluru. The cost of this apartment is mind-boggling Rs 50 crore or Rs 50,00,00,000.

Sources told the Times of India that the new luxurious flat valued at Rs 50 crore has established a new benchmark for residential property prices in the area. These sources said that the flat is situated on the sixteenth floor of the tower, and spans to about 8,400 sft.

Also, as per the report, featuring four bedrooms and five designated car parking spaces, the transaction commanded Rs 59,500 per sqft for an apartment.

It needs to be noted that Narayana Murthy has not confirmed the development or made any official statement. GoodReturns.In could not confirm the same.

As per the main website of the group, Prestige Kingfisher Towers is a luxurious residential apartment project located in Ashok Nagar, Central Bengaluru. Built by the Prestige Group, this project spans over 4.11 acres and houses 3 towers of G+34 floors. The project offers 81 apartment units of 4 BHK configurations. The price of Prestige Kingfisher Towers starts from Rs 31.5 crores. This project is owned by Vijay Mallya, a former Indian businessman.

Kingfisher Towers was launched in October 2012, and its possession date began from December 2018.

Meanwhile, Murthy founded Infosys in 1981. Infosys is today, a highly innovative software services global company listed on NYSE in the US and on the Bombay Stock Exchange in Mumbai. Murthy conceptualized, articulated, and implemented the Global Delivery Model (GDM) which has become the backbone of the Indian software industry. GDM is based on collaborative distributed software development principles and has resulted in the delivery of superior quality software to global customers delivered on time and within budget. Mr. Murthy also introduced the concept of a 24-hour workday, to the world, as per the Infosys website.

Currently, Murthy has a net worth of $5.3 billion as of December 7, 2024, as per Forbes data, He is ranked at 62nd position in India's billionaires list.

Bengaluru Residential Market Trends And Outlook:

In general terms, buying a property is a lengthy process and requires due diligence. Bengaluru is currently a booming city, popularly known as silicon valley since it a home to many tech giants like IBM, Infosys, Wipro, Accenture, Cisco, Oracle and Capgemini among others. Additionally, it has emerged as a hub for vibrant startups, high-end office spaces, luxury homes and infrastructure development. This makes it attractive spot for residency and the real estate market is constantly growing in the city.

As per the latest report of Anarock released for Q3 of 2024, Bengaluru's residential real estate sector continues to be a driving force in India's housing market. In Q3 2024, Bengaluru accounted for a significant 17% of new housing launches across India's top seven cities.

Notably, Bengaluru ranks fourth in terms of housing sales among the top 7 cities in India, while inventory overhang of Bengaluru remains steady at 8 months, since the start of 2024, as per the Anarock report.

However, in Q3 of 2024, sales were down. The data showed that the Bengaluru residential market exhibited a notable downturn in Q3 2024, with approximately 15,000 housing units sold, marking an 8% decrease compared to both Q2 2024 and Q3 2023.

Going ahead, for Q4 of 2024, Anarock's data said that "As we approach the final quarter of 2024, Bengaluru's real estate market is poised for sustained growth, fueled by a robust IT-ITeS sector, ongoing infrastructure development, and the upcoming festive season that is expected to further stimulate buyer interest. The city's reputation as a tech hub, coupled with significant investments in metro expansions and improved connectivity, will continue to drive residential demand."

"With a healthy mix of established developers launching new projects and a growing appetite for premium and luxury segments, investors and homebuyers can expect steady price appreciation, making the last quarter of 2024 an opportune time to capitalize on Bengaluru's thriving real estate landscape," Anarock's data added.

However, it needs to be noted that buying a property isn't just sending and receiving money for the real estate. It is packed with a slew of processes which include getting stamp duty, registration and fulfilling various charges criteria. Here are the details of stamp duty and property charges in Bengaluru, which do impact your buying or selling end value for a house.

Stamp Duty On Property In Bengaluru:

Stamp Duty: Currently for male owners, here are the stamp duty levied in Bengaluru for a property:

- 2% for properties valued below Rs 20 lakh
- 3% for properties valued between Rs 21 lakh to Rs 45 lakh
- 5% stamp duty on properties valued above Rs 45 lakh.

The stamp duty is similar for female owners as well.

Registration Charges On Property In Bengaluru:

Registration Charges: Both male and female owners will have to pay 1% registration charges of property value.

Additional charges on property in Bengaluru:

Except for properties bought in rural areas, homebuyers will have to Cess of 10% which is applicable on stamp duty. Additionally, there is a surcharge of 2% for properties above Rs 35 lakh in urban areas and a 3% surcharge for properties above Rs 35 lakh in rural areas.

How are these charges calculated on property in Bengaluru?

1. Firstly, the stamp duty and surcharge are calculated on either the market value of the property or the guidance value set by the government - whichever is higher.

2. Secondly, the cess and registration fees are formulated from the property valuation.