Indian Real Estate

Revised Circle Rates in Karnataka -2023


03, December 2025

Karnataka Govt Revises Bangalore Circle Rates! Yes you heard it right, now let's dig a little deeper

Circle Value to Bridge Market Pricing and Guidance Value

September 21, 2023:

The Karnataka Government is ready to implement revised "Guidance Values" for property in Bangalore from October 1st, 2023. These Guidance values, which determine the property registration fee and stamp duty, are expected to increase by approximately 25 to 30 percent!

Guidance Values are the minimum property's selling value, officially set by the state government depending on the location and property type, aiming to prevent undervaluation.

The reformation occurs after five years of delay and aims to prevent black money transactions and bridge market pricing and guidance value. In the locations where the market rates are similar to guidance values, the increase rate is approximately 10 percent. In contrast, in locations such as Electronic City, it is seen a 50 percent increase in revision.

The Karnataka Government plans to implement the reformed values in Bangalore first and slowly implement them in other districts also. This action is expected to increase the property cost significantly, especially in the Electronic City corridors and city's prime locations -- also increases the stamp duty and registration fees.

The Government is all set to launch the revised property circle rates under the new name "Guidance Values" since 2018-2019. This initiative was brought to light post the latest elections, boosting Karnataka's revenues.

Hike in the Circle Rates

The state Government Plans to increase the Circle Rate [the Guidance Values] by 10-30 percent. Although the immediate impact on the property may be minimal, over the next two decades, the prices are expected to increase.

What is the Circle Rate or the Guidance Rate?

Ranav Tranquil Haven

July 2023:

The Karnataka Government has announced a 14% increase in the state's Circle Rate or the Guidance Value for immovable properties. The Guidance Value determines the minimum the property value that are registered during the property sales transactions. The revision is expected to overcome the industry's oddity, ultimately giving real estate an effective boost.

The current values follow the January 2019 values, which were set during the COVID-19 pandemic. The proposed revision will inherit a rational and scientific guidance value system adapting to GIS technologies to enumerate Guidance Value - based on the improving accuracy, roads, streets, and property's transactional transparency.

The increasing guidance values may impact property transactions, and the property's affordability may be questionable, leading to unfavorable negative effects, especially when end-user demands increase.

As of now, there isn't an official update, but it is expected that the budget for the Circle Rates of 2024 will be announced by the Government of Karnataka in the upcoming days.

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