Revenue Shortfall Pushes Govt to Hike Guidance Value

Bangalore:Feb 20 2016

ManuAiyappa Kanathanda

After proposing a special cess on private layout developers, the state government has now decided to increase guidance value for properties by 10% to 30% to mop up revenue in the next fiscal and fix the huge shortfall of revenue collection from the stamps and registration department.Guidance value is the indicative market value of a property, and the government registers a sale only at that value or higher.

The state revenue department proposed an increase in guidance value of properties from April 1 to ensure it meets the target for this fiscal and give a big boost to the state exchequer.

According to officials, the gov ernment set a target of Rs 8,200 crore for the stamps and registration department for 2015-16– but it suffered a shortfall of about Rs 2,000 crore. “The department hopes people will rush to buy or register properties ahead of the hike in guidance value and this will help meeting the current year’s target,” officials added.

NV Prasad, inspector-general of registration and commissioner of stamps, however, said the revision of guidance value has nothing to do with revenue collection target. “The revision of guidance value is an annual affair since 2014 and done usually in November. The gov ernment postponed it last year fol lowing an appeal from the realty sector. This time, we have decided to revise it a little early,” he added.

The decision comes in the wake of a flat real estate market, and re ports that property registrations have hit a record low and thousands of flats and sites developed by private developers are unsold in and around Bengaluru.

Apart from increasing land registration fee, the government has already proposed a 2% cess on the market value of fresh layouts to implement projects for the Ring Road, drinking water, rapid transit and slum development (0.5% each). With the hike in guidance value and imposition of cess on private layout developers, realty experts said property prices could shoot up by at least 5% to 15%.

Experts also predict a slump in land dealings, especially residential properties, after April as it would mostly affect buyers and real estate developers. “People may get discouraged by the extra registration fee. Moreover, many aspiring to buy a plot or flat may put off their plans and wait for things to change for the better,” they said.

Courtesy by:The Times of India

Realtors association says proposed rules will kill biz

Bangalore:Dec 02 2016

The Bangalore Realtors Association of India (BRA-I), an association of real estate agents, has said the proposed real estate regulatory authority rules by the state government could make their business unviable due to stiff barriers to entry and the penalty levied.The government has proposed registration fees of Rs 5 lakh in the city and Rs 2.5 lakh in the rural areas for real estate agents, considerably steep compared to Rs 10,000 in Uttar Pradesh and Gujarat.

The agents work for a mere two percent commission on the consideration value. The high cost of operations and the long gestation period in real estate transactions diminish the real returns. In light of this, it is unviable to expect the agent to fork out Rs 5 lakh as registration fees,“ Farook Mahmood, CMD of property consultancy Silverline Realty , said.

Mahmood said such actions by the government will lead to the development of parallel unorganized agents who cannot afford the fees.This, he said, will encourage cash transactions which will be a set back to the trade.

The realtors association also expressed their reservations on the proposed penalty of 5-10% on the total value of a unit and imprisonment of up to one year in case of default by a developer.

“A default by a developer for whatever reasons cannot be held against the independent agent who is not part of the developer’s business process. While it is definitely right to prosecute an agent for any offence committed by him, it is completely illogical to hold him responsible for any offence committed by the developer,“ BRA-I secretary Ayub Khan said.

 Courtesy by: Times of India

Luxury home launches in Bengaluru up 531% in 4 yrs

Bengaluru:Feb 02 2015

 

Over 6,000 Units Were Launched In 2014
A Kolkata based businessman recently picked up a Rs 10 crore residential unit in the upscale locality of Sadashivanagar after his son got admission in a city college. This is one among numerous sales of luxury apartments, villas, and row-houses happening in the country’s third largest property market.In the four years between 2010 and 2014, Bengaluru has seen a stupendous 531% growth in luxury residential unit launches. International property consultancy firm JLL India reports that in 2010, eight projects comprising of 950 units priced above Rs 3 crore were launched. In 2014, an eyepopping 6,000 luxury units spread over 35 projects entered the property market.

The demand, said Om Ahuja, CEO-residential services, JLL India, is on account of the rise in the number of high net-worth individuals (HNI) in the city, the rapid pace of urbanization, and the influx of global lifestyle trends. “The fast growth of industries such as technology and financial services is propelling many middle-income group individuals into the HNI bracket,“ said Ahuja.

The inflection point of luxury residences seems to have happened in 2012, when 3,800 units were launched as compared to 1,350 units in the previous year, a 182% growth.

“Today , in Bengaluru, Rs 3 crore is no more considered luxury . Homes starting from above Rs 5 crore is where the luxury market actually begins,“ said Farook Mahmood, president of the World Council of Brokers (FIABCI) and CMD of Silverline Realty .

Mahmood’s office has been closing around two to three luxury home transactions each month and is currently working on closing a Rs 10 crore residential buy for a South East Asian client. Typically , sale closures at the top-end of the property market take 6 months to 8 months per unit.

Compared to that in Mumbai or the National Capital Region, the number of Bengaluru-based HNIs is still small. But there’s good demand from buyers outside of the city, including NRIs.“Bengaluru is much more affordable than Mumbai and Delhi,“ said Mahmood.

Developers are increasingly using global property developers and architects to design and develop the projects. Several branded luxury residences, wherein homes are comparable to the best 5-star hotel rooms in the city, are being built.

But some also fear the city is heading into an oversupply of luxury residences. Anshuman Magazine, CMD of property consultancy CBRE South Asia, says the luxury real estate market is interwoven with the state of the economy and to the inherent cyclicality of the housing market.

“The luxury element typically thrives in a feelgood market. We expect the sector to pick up with the economy’s revival, which is now likely ,“ said Magazine.

Courtesy by:Times of India

BBMP proposes 5% increase in garbage cess

Bangalore:Dec 28 2016

Citizens can crib all they want about filthy roadsides and stinking neighbourhoods but the BBMP has no plans to streamline the solid waste management system. Instead, the agency has proposed a hike in garbage cess.The issue will be discussed in the BBMP council’s upcoming meeting, where cor porators will debate increasing the garbage cess from the existing 10% to 15% of the property tax. “The hike will apply to residential units, apartments, commercial establishments, hotels, nursing h o m e s, i n d u s t r i a l units etc,“ said a member of the BBMP standing committee on public health.

Chandrakanth K, a member of the Vijayanagar Resident Welfare Association, was disappointed with the move and called it a New Year shocker.

“On what basis does the civic body want to hike garbage cess? Ideally, we should not pay them any cess, given the pathetic state of solid waste management in the city. Garbage collection is not being done properly; trash heaps dotting roadsides are proof of the mismanagement,“ he rued.

A senior BBMP official said they hope to improve the waste management system by increasing the cess. “We are spending about Rs 500 crore annually on waste disposal. With the existing cess slabs, we manage to get barely Rs 100 crore. A 5% hike will augment the revenue to about Rs 300 crore,“ he added.

Courtesy by: Times of India

With online platform, property tax details will now be at your fingertips

Bengaluru:28 –December-2016

TECH TOOL System Will Enable BBMP, Users To View Map Of Each Property, Tax Amount And Dues
Want to know how much property tax you have paid over the years or the amount you still owe BBMP?
Curious whether your neighbours are following tax norms? All you need to do is to log on to the Palike’s website and click on the Geospatial Enabled Property Tax Information System (GEPTIS) link under the citizen services tab.The online platform has been set up by BBMP in association with the Indian Space Research Organisation (Isro), and was inaugurated by chief minister Siddaramaiah on Tuesday . GEPTIS, which will be opened to the public soon, will enable the agency to track property tax collection across the city.This will be possible through the Bhuvan Karnataka platform, created by the National Remote Sensing Centre (NRSC), Hyderabad, a wing of Isro. “It will give BBMP access to a three-dimensional map of each property and allow officials to key in details like the PID number,“ said AS Kiran Kumar, chairman, Isro.NRSC and BBMP have signed an MoU to share geospatial images and the Bhuvan platform.BBMP has records of 18.9 lakh properties in Bengaluru and estimates the number is much more. The dashboard of the GEPTIS page displays this year’s total tax amount -Rs 3,151.23

COLOUR CODING

One can register with GEPTIS and find hisher property by entering the owner’s name, address and PID number. The property will be displayed on a map containing minute geographical details. If the property is marked green, it means the owner has paid tax every year since 2009-10. If one has defaulted even for a year, the block is light pink in colour.It is deep pink if the person is a long-time defaulter. However, the agency has ensured no names are revealed on the portal, BBMP commissioner N Manjunath Prasad said.

Siddaramaiah said, “Digitization is important but BBMP must get people’s feedback too. It must find out whether people are able to use these services and if they have changed their opinion about governance. Otherwise, these technological innovations are of no use.“

(With inputs from Raksha B)

BOOK CREMATORIUMS ONLINE

BBMP has digitized two other services -seeking permission for road-cutting and booking of crematoriums. The Online Road Cutting Permission System (ORCPS) enables citizens to seek BBMP’s nod to cut roads for water, sanitary and electrical connections. One needs to submit the relevant documents along with an application; BBMP officials will verify the documents and keep the applicant informed via SMS and email. After the execution of the work, officials will visit the site for an inspection.

Another facility allows citizens to book electric crematoriums and reserve time slots for last rites. The receipt and death certificate will also be issued through the portal. BBMP has also revamped its website, making it easier for citizens to locate councilors’ contact details, resolutions made in the council, services offered and departments in the corporation.

Courtesy by: Times of India

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