Mangaluru: MLA J R Lobo held a meeting on the principles to fix the market value of immovable property, at the MCC Chamber, Lalbagh here on April 25.
CREDAI President D B Mehta attended the meeting on behalf of CREDAI, KCCI and the Engineers association. Mehta said, “For fixing the market value of land, the roads abutting the properties are categorised as Commercial Roads (high potential commercial roads) and Residential Roads. The ratio of value of residential property to commercial property on a commercial road is considered to be 1:2 and on residential road, it is considered to be 1:1.5.”
Accordingly, the residential and commercial values of land are considered for all purposes (other than registration of lands) such as value of residential apartments and commercial premises, etc. For the purpose of registration of lands, the listed values should be considered. However, for any commercial properties on residential roads, 1.5 times the listed value should be considered for registration.
Unlisted cross roads are classified as roads with width above 1.5 m. The value of cross roads above 1.5m width is considered about 75% the value of the main road and the value of cross roads up to 1.5m width is considered about 50% the value of the main road.
The value of a property abutting 2 or more roads of different values should be estimated in respect to the highest value road from which approach is provided to the plot. Value of corner plots abutting roads of same value should be increased by 10%. The values mentioned in the list should be applicable for calculating the guideline value of properties of different extents in the following manner,
Value of properties having an extent upto 3 cents – 50% of listed value
Value of properties having extent above 3 cents should be calculated in the following slabs;
Value of extent upto 10 cents – full value as per list
Value of extent upto next 10 cents – 90% of listed value
Value of extent upto next 10 cents – 80% of listed value
Value of extent upto next 10 cents – 70% of listed value
Value of extent upto next 10 cents – 60% of listed value
Value of further extent – 50% of listed value
Eg: Value of a property having an extent of 80 cents with a guideline value of Rs 1.0 lakh/cent
1st 10cents – (Listed value 1Lakh) – 10 cents x Rs. l Lakh = Rs.10 Lakh
2nd 10cents – (90% of 1Lakh) – 10 cents x Rs. 90,000 = Rs. 9 Lakh
3rd 10cents – (80% of 1Lakh) – 10 cents x Rs. 80,000 = Rs. 8 Lakh
4th 10cents – (70% of 1Lakh) – 10 cents x Rs. 70,000 = Rs. 7 Lakh
5th 10cents – (60% of 1Lakh) – 10cents x Rs. 60,000 = Rs. 6 Lakh
Balance area of 30 cents – (50% of 1Lakh) – 30cents x Rs. 50,000 = Rs. 15 Lakh
Total value of 80 cents = Rs. 55 Lakh
For residential apartments:
Residential apartments are categorised into
a. Sale area up to 1000Sq ft (considered as low budget apartments)
b. Sale area above 1000Sq ft upto 2000Sq ft (considered as medium budget apartments)
c. Sale area above 2000Sq ft (considered as high budget apartments)
Rs 2000 per sq ft is considered as the value of apartments upto 1000 sq ft where the land value is up to Rs 3 lakh per cent. The value of apartments above 1000 sq ft up to 2000 sq ft is considered 10% more, i.e Rs 2200 per sq ft. The value of apartments above 1000 sq ft upto 2000 sq ft is considered 20% more, i.e Rs 2400 per sq ft.
An additional value of Rs 150 per sq ft is considered for apartments for every 1 lakh additional land value. The listed value is considered for apartments upto ground plus four floors only. An additional value of 1% is considered for every additional floor. The listed values are for ceramic/ mosaic flooring of apartments. 10% additional value shall be considered for granite/marble flooring.
The values mentioned in the list for residential apartments are values inclusive of undivided interest in land as well as building value for the super built up area (plinth area plus percentage of common areas for the undivided interest in common areas and facilities) of the apartments.
Note: The value of residential apartments shall be applicable for registering any dwelling unit only in buildings where there are more than 4 dwelling units (Apartment buildings). For registering other properties with dwelling units (land with residential buildings of 4 dwelling units and below), the value of the property shall be the sum of the value of land as per the listed value and the building value as prescribed herein.
Commercial premises are categorised into
a. Sale area up to 1000 sq ft (considered as high value premises )
b. Sale area above 1000 sq ft upto 2000 sq ft (considered as medium value premises)
c. Sale area above 2000 sq ft (considered as low value premises)
Rs. 2000 per sq ft is considered as the value of premises upto 1000 sq ft, where the land value is upto 3lakhs per cent. The value of premises above 1000 sq ft up to 2000 sq ft is considered 10% less i.e Rs 1800 per sq ft. The value of premises above 1000 sq ft up to 2000 sq ft is considered 20% less, i.e Rs 1600 per sq ft.
The value of premises in different floors is considered as follows,
Premises in ground floor – listed value.
Premises in lower ground/basement floor – 80% of listed value.
Premises in first floor – 70% of listed value.
Premises in second floor – 60% of listed value.
Premises in upper floors – 50% of listed value.
The values mentioned in the list for commercial premises are values inclusive of undivided interest in land as well as building value for the super built up area (plinth area plus percentage of common areas for the undivided interest in common areas and facilities) of the apartments.
Value of open-terraces for registration purpose shall be 25% of the listed value of the Residential apartments/Commercial premises/building (to which the open terrace is attached) based on the land use of the premise/building.
Value of covered-terraces (covered with non RCC structure and open on the sides) for registration purpose shall be 50% of the listed value of the Residential apartments/Commercial premises/building (to which the covered terrace is attached) based on the land use of the premise/building.
Value of car parks within the building shall be Rs 1.5 lakhs per car park and Rs 1.25 lakhs per parking spot for car park outside the building.
Depreciation for buildings (including Apartments/Commercial premises/Terraces) shall be allowed as follows:
First 3 years from the date of completion – no depreciation.
Next every year – 2% depreciation, up to a maximum depreciated value of 50%.
Note: Depreciation shall be allowed on the market value of building fixed under the Karnataka Stamp Act applicable for the year of consideration.
The value of Agricultural properties having an extent of 25 cents and less shall be as per the values of non-agricultural properties prescribed in the list.
The value of Agricultural property having an extent above 25 cents is fixed at Rs. 40,000/cent of land.
Values of properties in notified Industrial areas shall be the residential values mentioned in the list.
Responding to the demands, MLA Lobo said that in the next meeting, all the issues will be addressed. “We need to find a permanent solution for all these problems.” Lobo also advised the Mayor to send a circular to all the corporators to assist the town planning officer and the registrar while inspecting their respective wards.
Lobo further said that the classification of roads, naming, bylanes and the details of the maps should be available and it should be displayed in the MCC.
When the CREDAI president requested to provide a table in the MCC, so that the engineers can discuss problems with the town planning officers to rectify and fix them, MCC commissioner Hephsiba Rani said that till April 30, all the officers are busy in Social and Educational Survey because Chief Minister Siddaramaiah has strictly instructed the Deputy Commissioner to complete the survey by April 30. She also said that table space will be provided in the MCC to CREDAI engineers to work with the Town planning officers. A meeting will be called in this regard by May 15, she said.
Upgradation of 5 Markets
MLA J R Lobo also held a meeting with the engineers and the concerned authorities regarding the construction of Central Market, Kadri, Kankanady, Alape Padil and Kaikamba Market. He also said that only in Kulshekar Kaikamba, there is a Saturday Market and it needs to be retained.
Lobo also said that the bus stand work at Pumpwell should be started soon because giving assurances to the people and delaying the work will lead the people to lose hope. He instructed Engineer Dharma to estimate the total cost to build the bus bay.
Mayor Jacintha Alfred, deputy mayor Purushotham, Shashidhar Hegde, Mohan Naik, Engineer Dharma Raj and others were also present.