Real estate investors in the state capital heaved a sigh of relief when the recently announced revised Collector guideline (property guideline) rates were put on hold until further orders on Wednesday.

The move came after members of the Confederation of Real Estate Developers' Associations of India (CREDAI) and Bhopal MP Alok Sharma met with Finance Minister Jagdish Deora.The new rates, which marked a 5 to 200 percent increase in government land values in the city and its surrounding areas, had sent shockwaves through real estate builders, colonisers, and developers.

Government land value estimation, commonly referred to as guideline rates, though considerably lower than prevailing market prices in several areas, is used as a benchmark when calculating the worth of a property at the time of registration.

In simpler terms, the government land value index for an area determines the tax revenues the state government earns each time a property in that area is bought and sold.

Though higher guideline values can help curb the involvement of the parallel economy in the sector, realignment of these rates is often accompanied by speculation about an impending real estate crash.

Following the meeting between real estate developers and the MP, the decision has been put on hold until talks with stakeholders are completed.The proposed new rates included 240 areas in the state capital where guideline property rates would increase by 5 to 200 percent.

staff reporter n BHOPAL

Real estate investors in the state capital heaved a sigh of relief when the recently announced revised Collector guideline (property guideline) rates were put on hold until further orders on Wednesday.

The move came after members of the Confederation of Real Estate Developers' Associations of India (CREDAI) and Bhopal MP Alok Sharma met with Finance Minister Jagdish Deora.The new rates, which marked a 5 to 200 percent increase in government land values in the city and its surrounding areas, had sent shockwaves through real estate builders, colonisers, and developers.

Government land value estimation, commonly referred to as guideline rates, though considerably lower than prevailing market prices in several areas, is used as a benchmark when calculating the worth of a property at the time of registration.

In simpler terms, the government land value index for an area determines the tax revenues the state government earns each time a property in that area is bought and sold.

Though higher guideline values can help curb the involvement of the parallel economy in the sector, realignment of these rates is often accompanied by speculation about an impending real estate crash.

Following the meeting between real estate developers and the MP, the decision has been put on hold until talks with stakeholders are completed.The proposed new rates included 240 areas in the state capital where guideline property rates would increase by 5 to 200 percent.