Guidance Value in Bangalore 2026: What It Is, How to Check It, and What Buyers Get Wrong
The guidance value is the number most buyers in Bangalore ignore or misunderstand — and that misunderstanding can cost between Rs.2 and Rs.8 lakhs in unbudgeted stamp duty. I have sat across the table from buyers who negotiated what they thought was a good price, only to discover at the Sub-Registrar Office that stamp duty is calculated on the government-set guidance value — which is higher.
What is guidance value in property transactions?
Guidance value — also called circle rate or guideline value — is the minimum price the Karnataka government sets for property registration in a specific area. No property can be legally registered below this value. It applies to all transaction types: sale, gift, exchange, and mortgage. Stamp duty and registration charges are calculated on the higher of the actual sale price or guidance value. If you negotiate below the guidance value, stamp duty is still computed on guidance value.
How does guidance value differ from market value in Bangalore?
Market value is what buyer and seller agree to — driven by demand, builder brand, floor level, and amenities. Guidance value is the government floor. In established localities — Indiranagar, Koramangala, Jayanagar, Whitefield — market values run 40 to 120% above guidance value. In newer corridors like Devanahalli and Hoskote, the gap is 15 to 25%.
| Area | Guidance value (Rs./sqft) | Market value (Rs./sqft) |
|---|---|---|
| Indiranagar / Lavelle Road | Rs.18,000-25,000 | Rs.22,000-35,000 |
| Koramangala | Rs.14,000-18,000 | Rs.18,000-28,000 |
| Whitefield | Rs.7,000-10,000 | Rs.9,000-14,000 |
| Electronic City | Rs.4,500-6,500 | Rs.6,000-9,000 |
| Devanahalli | Rs.3,500-5,500 | Rs.4,500-7,500 |
| Hoskote | Rs.2,500-4,000 | Rs.3,000-5,500 |
Indicative values for residential apartments, May 2026. Always verify on Kaveri 2.0 before any transaction.
What changed in the February 2026 guidance value revision?
The Karnataka government revised guidance values across Bengaluru urban limits in February 2026, with increases of 6 to 15%. North Bangalore corridors — Devanahalli, Yelahanka, Hebbal — saw 12 to 15% increases driven by airport infrastructure. South Bangalore saw moderate 6 to 8% revisions. A buyer purchasing a Rs.80 lakh flat in Whitefield whose guidance value moved to Rs.85 lakhs will now pay stamp duty on Rs.85 lakhs — adding Rs.25,000 to Rs.35,000 in unbudgeted charges. Always check Kaveri 2.0 before signing the sale agreement.
How to check guidance value on the Kaveri 2.0 portal step by step
The Kaveri 2.0 portal is at kaveri.karnataka.gov.in. No login required.
- Go to kaveri.karnataka.gov.in and click Know Your Property Valuation.
- Select Basic Search for area name or Advanced Search for survey number.
- Enter district (Bangalore Urban), taluk, hobli, and village or ward name.
- Select property usage: Residential, Commercial, or Agricultural.
- Select property type: Site or Plot, Apartment, or Independent House.
- Enter total area and measurement unit.
- Click Fetch. The system shows guidance value per sqft.
- For apartments, enter construction type and floor details for the composite value.
The value shown is an estimate. The Sub-Registrar confirms the final value at registration. Variations occur for corner plots, wider road frontage, or premium floors.
Why is stamp duty calculated on guidance value instead of the sale price?
Section 47A of the Indian Stamp Act empowers the registering authority to demand stamp duty on the higher of agreed consideration or guidance value. Attempting to register below guidance value is not possible — Kaveri 2.0 flags it and the Sub-Registrar will reject the deed. Showing a lower agreement value while paying cash outside the transaction is tax evasion with serious legal consequences including penalties and income tax scrutiny.
What are the five buyer mistakes related to guidance value in Bangalore?
1. Budgeting stamp duty on the negotiated price, not guidance value. Common on resale flats where market prices may be at or below the revised guidance value. Check Kaveri 2.0 before finalising your budget.
2. Assuming guidance value equals market value. A property in Jayanagar can have guidance value of Rs.14,000 per sqft and market value of Rs.22,000 per sqft simultaneously. They are different numbers updated at different intervals.
3. Using outdated guidance values from third-party portals. Most property websites display values months or years out of date. Kaveri 2.0 is the only authoritative source.
4. Ignoring guidance value for agricultural land near Bangalore. Farm land near Devanahalli and along the Peripheral Ring Road has seen 20 to 40% guidance value increases since 2023. Buyers who skip this check face surprises at registration.
5. Not accounting for the 2% BBMP surcharge above Rs.45 lakhs. Properties in BBMP limits above Rs.45 lakhs attract a 2% surcharge on top of 5% stamp duty and 1% registration — taking the total to approximately 8%, not 6.6% as many buyers budget.
How does guidance value affect property tax in Bangalore?
For BBMP-jurisdiction properties, property tax uses the Unit Area Value method across five zones A to E — not directly on guidance value. For properties outside BBMP — town panchayats and rural areas around Bangalore — property tax is calculated as a percentage of guidance value: 0.1% per year for self-occupied residential and 0.2% for rented. Higher guidance values after the 2026 revision mean higher annual property tax in these areas. For the complete cost picture at registration, see the Karnataka property registration guide and the sale deed vs sale agreement comparison.
Frequently asked questions
Can I register a property in Bangalore below the guidance value?
No. Kaveri 2.0 will not process a deed below guidance value. Stamp duty must be paid on the guidance value even if the actual agreed price is lower.
How often is guidance value revised in Karnataka?
Not on a fixed annual cycle. Major revisions: October 2023 (25 to 30% across Karnataka), March 2025 (selective zone adjustments), February 2026 (6 to 15% in Bengaluru urban limits). Values stay frozen between revisions regardless of market movements.
What is the difference between guidance value and circle rate?
Same concept, different state names. Karnataka calls it guidance value. Delhi, Maharashtra, and UP call it circle rate or ready reckoner rate. In all cases it is the government-declared minimum price for property registration.
Does guidance value affect home loan eligibility in Bangalore?
Yes, indirectly. Banks lend on the lower of registered value or their technical valuation. Since registered value cannot go below guidance value, a higher guidance value can establish a higher baseline for loan calculation.
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