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Madhya Pradesh Guideline Value

Guideline value is the minimum price below which a property be registered in the state. Per square foot guidelines value for various kinds of lands and buildings is notified by the state government for all zones. Guideline value can be updated periodically by the state government, so state government takes average market values of last 6 months or 1 year and update the guideline value and they also take into account the kind of infrastructure and facilities in that area, so generally the guideline values lags behind the market value(knows as circle rate or reckoner rates).In Madhya Pradesh each city is divided into various Taluk or Tehsil which further divided into various subareas, wards and villages.Well developed or Posh localities will have a higher guideline values while least or lower developed localities has lower guideline values.

Provision for agricultural Land

In all areas except the areas / villages in which the value of property located on the road is determined separately, the value of the land situated on the national highway or their bypass is 100 percent more than the fixed price for agricultural land. The value of land situated on the state road or their bypass will be 50 percent more than the value of agricultural land, 20 percent more than the value of agricultural land on the main district road or other district route.In areas whose prices have not been set or missed in the guide line, the District Registrar will submit the proposal of the District Appraisal Committee to the Inspector General of Registration for approval. Guidelines for these areas can be issued separately during the year.If there is an intention to have more than one rate in respect of a property, then the maximum rate among them will be accepted.

Provision for buildings

Multi-storeyed buildings in which Madhya Pradesh Cell Ownership Act, 2000 and rules made thereunder are applicable.In relation to the provisions of section 4 (3), 4 (5) and 8 of the said Act, the market value of the apartment is calculated according to the built-up area of the apartment along with its common areas and facilities, Including the area of undivided share.If a document transfers an independent multi-storey bungalow of two or more floors to one kata, the value of the plot will not be calculated separately for each floor, but will be included only once. For the first, second and third and above floors, a reduction of 5, 10 and 15 percent in the construction cost will also be accepted.

Latest Updates on guidance value in Madhya Pradesh

On 21 June 2019,Government notified rate for land goes down by 20% in Madhya Pradesh as to improve construction and real estate business. But at the same time government increase the registration fees to 12.5% from 10.3% in urban areas and to 9.5% from 7.3% in rural areas, so there is no net revenue loss to the government. The guideline rates or circle rates are used for charging stamp dutiesand Registration fees. The step is predicted to have no change from revenue point of view, while at the same time help in betterment of construction and therefore the land sector. In maximum cities, the circle rate or guideline rate is less than the particular rate at which a property is sold. To save lots of on registration costs, many register properties on the idea of circle rates rather than the particular market price of the property. By lowering these rates by 20%, the gap between the market price and therefore the circle rate will increase, which may leads to additional cash transactions.

Below are the Latest Guidance Value in Madhya Pradesh

  • For Agricultural Land

    1. The value of the property located on the road including such areas / villages, except as determined separately, in all other areas, the value of the land situated on the national highway or their bypass is 100 percent more than the value for the agricultural land, the state road or the land situated on their bypass. A part. Price will be 50 percent more than the value of agricultural land, 20 percent more than the value of agricultural land on the main district road or other district road.For land which is situated up to 20 meters from the road, the rate of land adjoining the road will be valid for the entire area of that land.

    2. The valuation of the land earmarked for the use of major mineral quarrying will be accepted 50 % more than the value of irrigated agricultural land.

    3. Evaluation of agricultural land for all purpose in urban area will be accepted as follows

    1. The assessment of land in the villages specifically mentioned for this provision in the municipal area of Indore, Bhopal, Gwalior, Jabalpur and in the guide lines of the said districts will be accepted as follows.

      S.No Area of land Developed Plots(Residencial/Commercial) Diversified agricultural land Dead Agricultural land
      1. Area of land loweror equal to 1000 Scheduled residential/Commercial Plot Residential/Commercial Plot rates upto 400 square meters Residential plot rates up to 400 square meters
      80 percent of the rate of residential commercial plot up to 700 square meters above 400 square meters 80 percent of the rate of residential plot from 400 up to 700 square meters
      60 percent of the rate of residential commercial plot up to 1000 square meters above 700 square meters 60 percent of the rate of residential plot Up to 1000 square meters over 700 square meters
      2. Area of land greater equal to 1000 Scheduled Residential/Commercial plotRate Up to the first 1000 square meters according to 1.+ One and a half times the maximum rate of agricultural land for the remaining land Upto the first 1000 square meters according to 1.+ Agricultural land rate for remaining land

    2. Villages in the investment areas of Indore, Bhopal, Gwalior and Jabalpur (which are not included under clause 3.1). The assessment of land in the remaining municipal areas of the state and the villages specifically mentioned for this provision in the guide line will be accepted as follows.

      S.No Area of land Developed Plots(Residencial/Commercial) Diversified agricultural land Dead Agricultural land
      1. Area of land lower equal to 500 Scheduled residential/Commercial Plot Residential/ Commercial Plot rates up to 200 square meters Residential plot rates up to 200 square meters
      80 percent of the rate of residential commercial plot up to 350 square meters above 200 square meters 80 percent of the rate of residential plot from 200up to 350 square meters
      60 percent of the rate of residential commercial plot up to 500 square meters above 350 square meters 60 percent of the rate of residential plot Up to 500 square meters over 350 square meters
      2. Area of land greater equal to 500 Scheduled Residential/Commercial plotRate Upto the first 500 square meters according to 1. + One and a half times the maximum rate of agricultural land for the remaining land Upto the first 500 square meters according to 1.+ Agricultural land rate for remaining land

    3. Valuation of land in the villages specifically mentioned for this provision in municipal areas and guidelines is accepted as follows

      S.No Area of land Developed Plots(Residencial/Commercial) Diversified agricultural land Dead Agricultural land
      1. Area of land lower equal to 500 Scheduled residential/Commercial Plot Residential/ Commercial Plot rates upto 200 square meters Residential plot rates up to 200 square meters
      80 percent of the rate of residential commercial plot up to 350 square meters above 200 square meters 80 percent of the rate of residential plot from 200 up to 350 square meters
      60 percent of the rate of residential commercial plot up to 500 square meters above 350 square meters 60 percent of the rate of residential plot Up to 500 square meters over 350 square meters
      2. Area of land greater equal to 500 Scheduled Residential/Commercial plotRate Upto the first 500 square meters according to 1.+ One and a half times the maximum rate of agricultural land for the remaining land Upto the first 500 square meters according to 1.+ Agricultural land rate for remaining land

    4. Valuation of land in villages mentioned specifically for this provision in Municipal Council areas and Guidelines is valid as follows
    5. S.No Area of land Developed Plots(Residencial/Commercial) Diversified agricultural land Dead Agricultural land
      1. Area of land lower equal to 300 Scheduled residential/ Commercial Plot Residential/ Commercial Plot rates upto 120 square meters Residential plot rates up to 200 square meters
      80 percent of the rate of residential commercial plot up to 210 square meters above 120 square meters 80 percent of the rate of residential plot from 120up to 210 square meters
      60 percent of the rate of residential commercial plot up to 300 square meters above 210square meters 60 percent of the rate of residential plot Up to 300 square meters over 210 square meters
      2. Area of land greater equal to 300 Scheduled Residential/Commercial plotRate Upto the first 300 square meters according to 1.+ One and a half times the maximum rate of agricultural land for the remaining land Upto the first 300 square meters according to 1.+ Agricultural land rate for remaining land

    4. When the transfer of land is made to a single constitutional entity by a document jointly made by various landowners of agricultural land (who are not co-accountants). Provisions of Condica-4 would be on the highest value land. Assessment of the rate of per hectare according to agricultural land on the remaining lands. This arrangement will be applicable to the sold lands which are connected to each other, if the area of a property is less than the limit of the slab, then from the said border property.

    5. In the rural areas, if agricultural land is unirrigated and two crops, the valuation of 25 percent more than the rate of unirrigated land will be accepted.

    6. In the evaluation of irrigated land, the value of wells, tube wells etc. will not be added separately, that is, the rate of irrigated land will have the value of the means of irrigation.

    7. The value of diversion agricultural land should be one and a half times the value of irrigated land.

  • For Buildings

    1. Depreciation on the current construction cost in a property built more than 10 years old will be done as follows

    • 10 years to 20 years ago - 10%
    • 20 years to 25 years - 15%
    • 25 years to 30 years - 20%
    • 30 years to 35 years - 25%
    • 35 years to 40 years - 30%
    • 40 years to 45 years - 35%
    • 45 years to 50 years - 40%
    • 50 years to 55 years - 45%
    • More than 55 years - 50%

    2. Valuation of flats / apartments (cells) in residential complex buildings will be valid as follows.

    Floor Where the price is set separately in the guide line Where the values are not set separately in the guide line, the RCC Roof Value
    Ground Floor The value shown in the guide line 80 percent of the price shown in the guideline
    Basement and First floor 95 percent of the price shown in the guideline 75 percent of the price shown in the guideline
    Second Floor 90 percent of the price shown in the guideline 70 percent of the price shown in the guideline
    Third floor or above floors 85 percent of the price shown in the guideline 65 percent of the price shown in the guideline

    3. On transfer of open roof, 70 percent value of the rate of plot located in that area will be accepted.

    4. Evaluation of residential construction cost rate for construction on reserved plot for educational or health units (school / college / hospital / nursing home) in the layout approved by the city and village investment department, and other such construction which are not covered under commercial / industrial activities. Will be valid according

    5. If there is an intention to have more than one rate in respect of a property, then the maximum rate among them will be accepted.

  • For Plots

    1. The value of the plot located on the national highway or their by-pass is 100 percent more than the normal value of the plot, the value of the plot located on the state road or their by-pass, 50 percent more than the normal value of the plot, located on the main district road or other district route The value of the plot will be considered 20 percent more than the normal value of the plot fixed for the said area, but where the value of the plot located on the said routes is determined separately, the above provisions will not be applicable, the plot which is situated up to 6 meters from the road. For, the rate of the plot adjacent to the road will be accepted for the entire area of that plot.

    2. If the plot is located on the corner, 10 percent more than the fixed price will be accepted.

    3. If the foundation is filled in the plot, then 10 percent more value than the fixed value will be recognized. If such plot is located on the corner, then 20 percent more value than the fixed value will be recognized.

    4. In the layout approved by the city and village investment department, the purpose of the plots is determined commercially. Their Evaluation will be done on the value of commercial land.

Frequently asked questions (FAQ) s

  • Should we register our property at Guidance Value by state government or Circle rate?

    Market price or circle rate of a property in a particular area can be much higher than the circle rate fixed by the Revenue Department, then homebuyer can register property at a rate anywhere between guidance value and circle rate.

  • How guidance value affect the property price?

    If the Guidance value of particular land is higher than the circle rate then a homebuyer cannot register the land below guidance value, so property can be registered at guidance value or circle rate whichever is lower, but registration on the circle rate leads to pay higher stamp duty.

  • How can latest guidance value can be obtained?

    Latest Guidance value of a particular area can be obtained from Sub-registrar office in a particular city.

  • How Lower Guidance value impact purchaser and retailer?

    Lower guidance value helps both purchaser and retailer, as it lowers the stamp fees and registration fees for the purchaser and it also makes lower sale value for the purchaser.

  • How the Guidance values of a property vary?

    The guidance values vary within localities, plots or projects within an equivalent locality. There are various steps that calculate the guidance value of a property for evaluating your capital costs.

  • Can Guidance value change according to floor in a building?

    The bottom Guidance value remains same till 5th floor and rise from 6th floor.

  • Why government raise the Guidance value of a property?

    Major source of revenue for the state government is Guidance Value of Properties. Uplifting the guidance Value results in the higher revenue for the state government.