What is Guidance Value?
The guidance value is the non-negotiable price per sq. ft. for properties in a particular locality which is defined by the Government. A well-developed locality will have a higher guidance value. This value is calculated based on the population, infrastructural and real estate development and other defining aspects of the locality and is liable to appreciate or depreciate.
Once in 3-4 years, the Government will raise the guidance value for increasing the revenue. The price per sq. ft. of a locality cannot be lower than the one quoted by the Government.
A Guide To Guidance Value Calculations
The guidance value differs between localities as well as apartments or projects within the same locality. Here’s a guide to derive the guidance value for estimating your investment costs.
1: Prime Locality:
The existing real estate and reputation of developers, and the quality of upcoming projects ranging from affordable, mid-segment or luxury residences determines guidance value. A locality which is popular for premium apartments and villas by renowned builders will have a high guidance value.
2: Higher Floors:
The base guidance value remains the same till the 5th floor. The value increases from the 6th floor upwards.
3: No. of Amenity Groups:
The Bengaluru Government has defined the lifestyle amenities offered by residential properties into 14 categories ranging from clubhouse, kids’ play area, fitness, commercial spaces & more. The guidance value increase for amenity groups of 5 or more.
4: Car Parking:
The number of cars you own is multiplied by the car parking guidance value, which is calculated based on the total property value.
How Does It Help?
It’s important to be aware of the guidance values to be able to save on your property purchase. By understanding the prevailing market price in any locality and the overall demand for a locality or project, you have a more realistic insight into market potential and the right price to invest.
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