Despite opposition from stakeholders, the state capital will likely see property guideline rates increase by an average of 18% across 1,283 locations from April 1. In some areas, hikes will range from 5% to a staggering 300%.

The proposal, currently under review by a Central Evaluation Committee, has sparked significant opposition. The local chapter of the Confederation of Real Estate Developers' Associations in India (CREDAI) is leading protests, urging a halt to the increase, which it deems excessive and contrary to the interests of the real estate sector.

CREDAI President Manoj Meek has said that the consistent rise in rates is harming property developers. He claims local representatives also oppose the increase and demand a reversal of the guideline rates.

The sub-evaluation committee meeting in March led to this proposal, with more than 200 objections from residents, especially in Kolar and Hoshangabad Road. Proposals for rural areas include hikes as high as 300%, which may be revised.

Despite this, a reduction in the total number of locations has been proposed. The new collector guideline covers 2,885 locations, with hikes in 1,283 of them, and seven new locations added. In response, CREDAI demands a halt to the increase, reverting rates to pre-COVID levels, and the formation of an independent expert committee to ensure transparency. Several areas, including Lalghati and Hoshangabad Road, are set to see significant rate hikes.

Collector guideline rates are the area-wise benchmarks that the government uses to calculate taxes on real estate transactions.

Market watchers say that the sector was beginning to show signs of growth in several pockets, and a hike in taxes at this juncture may result in unsold inventory, as buyers may not be willing to purchase at escalated prices. Government officials, on the other hand, claim that enhanced guideline rates help curb the involvement of black money in real estate and also provide much-needed revenues for the state government.