The ultra-high-end residential apartments units at Prestige Kingfisher Towers were booked for upwards of Rs 25,000/sqft. But the registration department which did a valuation of the property, in the final stages of construction, this year has pegged the price of the property at an abysmal Rs 12,000-12,211/sqft, way below the market price.
The government which recently notified the draft of revised property values in the city has invited objections/suggestions from citizens on the new rates and overall there has been an increase to a tune of 10-100% across the areas. Prestige Kingfisher Towers, a joint venture property of Prestige and UB Group on Kasturbha Cross road, has 82 signature flats which were sold “by invitation only.”
Spread over 8,200 sqft, this property is selling upwards of Rs 20 crore, according to industry sources.
The tower is being built after demolishing the old residence of UB Group honcho Vijay Mallya, and the top floor will have his sprawling residence.
Prestige Kingfisher Towers isn’t the only one, another tony property on the same lane, Van Gogh’s Garden being developed by Total Environment and being quoted at Rs 11.5 crore to Rs 20 crore, has been included it in its guidance value list by the government at the pricing of just Rs 12,000/sqft.
The realty industry has expressed resentment over the revision, citing it as a blow to an already down market.
This year’s revision was based on a different calculation – the average of the transaction amounts in each area. But looking at some of the sampling of properties, this calculation seems unscientific.
However, according to sources, even as the guidance value is nearly 100% less than the selling price, a number of transactions in these area have been inked for the actual purchased amount.
While UB Towers on Vittal Mallya road continues to be the costliest property of the city at Rs 20,446/sqft as per government records, the land prices on the road is around Rs 14,000/sqft while it is Rs 15,000/sqft on Lavelle Road. Another new property brought under the valuation list is 909 Lavelle on Residency Road which is priced at around Rs 15,139/sqft. This commercial property which is in the final stages of construction is at the intersection of Lavelle Road and Richmond Road.
On the other hand, several properties have been valued much higher than the market value. For instance, Prestige Ozone is priced around Rs 15,000/sqft, whereas the selling price is not more than 12,000/sqft.
Similarly, a high-end villa project is being sold for around Rs 6,000/sq ft, while the guidance value is Rs 10,000/sq ft. In such cases where the purchase price is lower than the guidance value, a buyer has to register the property at the government-fixed rate.
A real estate dealer analyses: “Lot of properties has been priced higher than the market rates in this revision. As a result, consumers will have to pay according to the guidance value which will result in higher stamp duty. For the seller, the capital gain tax and related taxes will also be high as the income tax department takes guidance values into consideration.”