Short answer: On guidance value vs market value in Bengaluru's east, the gap is wide. Knight Frank's H1 2026 flat prices for Whitefield, Marathahalli and KR Puram run about 1.3 to 3.2 times the median apartment guidance value we parsed for the Mahadevapura sub-registrar area. So for most flats, stamp duty is charged on your price, not the guidance value.
- Guidance values haven't moved since 1 Oct 2023. Market prices in the belt rose 14% to 20% in the 12 months to H1 2026 (Knight Frank).
- Flats: the Mahadevapura apartment median is ₹4,854 per sq ft of super built-up area, against Knight Frank ranges of ₹6,400 to ₹15,500 per sq ft.
- Duty is on the higher of the two. In the east, that's almost always your price.
- The gap flips at the edges. On cheap plots in outer areas, a price below the guidance value triggers duty on the guidance value and income-tax deeming for both buyer and seller.
- Use our "floor, buffer, flag" ratio (price ÷ guidance value) to see which side of the line a deal is on.
- What is guidance value, and what is market price?
- How big is the gap for East Bengaluru flats?
- What about plots and sites?
- Is the gap getting wider?
- What does the gap mean for you?
- The floor, buffer, flag ratio (our framework)
- How should you use this before buying?
- What mistakes do buyers make with guidance value?
- What should you do if...
- Method notes and limits
- Related reading
- Frequently asked questions
- Talk it through with acre&key
- Sources
Guidance value is the Karnataka government's floor for each property, set by the Central Valuation Committee and notified in the gazette. Market price is what buyers actually pay. In East Bengaluru the two have drifted far apart, and that matters more than most buyers think, though not always in the way they expect.
What is guidance value, and what is market price?
- Guidance value is the minimum value the sub-registrar will accept for stamp duty. Stamp duty is charged on the higher of the guidance value and your agreed price (Karnataka Stamp Act, s.45-A). The current rates came into force on 1 Oct 2023 (gazette via OpenCity).
- Market price has no single official number. Consultants such as Knight Frank and ANAROCK publish locality ranges or quoted base rates, mostly for new flats. Listing portals publish asking prices, which aren't evidence of what anything sold for.
A word of caution: some property portals quote a "guidance value" for Whitefield that doesn't match any line we can find in the 2023 gazette. Use the gazette or Kaveri, not a portal, for the floor.
How big is the gap for East Bengaluru flats?
Flats are notified per sq m of super built-up area, mostly project by project. The gazette treats super built-up as 1.25 times carpet. We parsed 172 apartment entries for the Mahadevapura sub-registrar area: the median was ₹52,250 per sq m, or ₹4,854 per sq ft (our guidance value table).
| Locality (Knight Frank, H1 2026) | Price range per sq ft | 12-month change | Low end ÷ GV median | Midpoint ÷ GV median | High end ÷ GV median |
|---|---|---|---|---|---|
| KR Puram | ₹6,400–13,400 | +20% | 1.32× | 2.04× | 2.76× |
| Whitefield | ₹7,100–15,200 | +14% | 1.46× | 2.30× | 3.13× |
| Marathahalli | ₹7,310–15,500 | +15% | 1.51× | 2.35× | 3.19× |
Source: Knight Frank, India Real Estate H1 2026, "Residential price movement in select locations". GV median: Mahadevapura SRO apartment entries, gazette in force from 1 Oct 2023 (acre&key parse).
ANAROCK's Q1 2026 quoted base rate for Whitefield, ₹10,680 per sq ft, works out to 2.20× the same median (ANAROCK Bengaluru Q1 2026).
Read these ratios as indicative. Consultants don't publish how their per sq ft area is defined, KR Puram and Marathahalli flats may sit under other sub-registrar offices, and your project has its own gazette line. Sarjapur Road falls largely under different sub-registrar offices that we haven't parsed, so we've left it out of the ratio table. Knight Frank puts it at ₹5,700 to ₹11,300 per sq ft, up 3% in 12 months.
What about plots and sites?
Site rates are notified per sq m of land, line by line: village, main road, BDA layout. A few East lines from the 2023 gazette:
| Gazette line (residential site) | Per sq m | Per sq ft |
|---|---|---|
| Bellandur (village) | ₹93,285 | ₹8,666 |
| Whitefield Main Road | ₹80,000 | ₹7,432 |
| Hoodi to K R Puram Main Road | ₹75,000 | ₹6,968 |
| Marathahalli Main Road | ₹65,000 | ₹6,039 |
| Whitefield (village) | ₹60,000 | ₹5,574 |
| Varthur (village) | ₹55,000 | ₹5,110 |
| Krishnarajapura (village line, Ward 52) | ₹46,000 | ₹4,274 |
| Hoskote Town (M V Extension) | ₹25,000 | ₹2,323 |
| Sarjapura (village) | ₹20,000 | ₹1,858 |
Source: Karnataka Gazette Part III, 30 Sep 2023, Shivajinagar, Basavanagudi and Bengaluru Rural registration district tables (OpenCity copies).
There's no official per sq ft market series for plots at this level, so we haven't computed plot ratios. That's an honest unknown. What the table does show is a spread of more than four times between Bellandur and Sarjapura village lines, which is why the line matters more than the locality name.
Is the gap getting wider?
Yes, on the evidence available. Guidance values have stayed at the 1 Oct 2023 rates, while Knight Frank's 12-month price changes for the east were +14% (Whitefield), +15% (Marathahalli) and +20% (KR Puram).
A revision is being prepared, but not notified. News reports have mentioned 12% to 15% (New Indian Express, Feb 2026, news) and up to 35% (The Hans India, 12 Oct 2026, news). The value in force on your registration date is the one that applies.
What does the gap mean for you?
Worked example 1: duty on a Whitefield-belt flat
Illustrative. A resale flat with 1,000 sq ft carpet, so 1,250 sq ft super built-up, priced at ANAROCK's Whitefield base rate.
| Step | Working | Result |
|---|---|---|
| Agreed price | 1,250 × ₹10,680 | ₹1,33,50,000 |
| Guidance value (at the median line) | 1,250 × ₹4,854 | ₹60,67,500 |
| Duty base (higher of the two) | ₹1,33,50,000 | |
| Stamp duty, cess, surcharge and registration at 7.6% | ₹1,33,50,000 × 7.6% | ₹10,14,600 |
| If duty were on the guidance value | ₹60,67,500 × 7.6% | ₹4,61,130 |
The 7.6% is the combined Karnataka charge for a resale (5% duty, 10% cess and 2% GBA surcharge on the duty, plus the 2% registration fee); see our full cost of a flat breakdown. The guidance value doesn't change your duty here, because your price is more than double it.
Worked example 2: would a 35% hike change that?
Illustrative. If the Mahadevapura median rose by the 35% that's been reported:
| Scenario | Per sq ft | Below Whitefield's low end of ₹7,100? |
|---|---|---|
| Today | ₹4,854 | Yes |
| +15% | ₹5,582 | Yes |
| +35% | ₹6,553 | Yes |
Even at +35%, the median line stays under the bottom of Knight Frank's Whitefield range. For most flats in the belt, a hike wouldn't change your duty. It would matter more for cheaper units, older resale flats and plots, where prices sit closer to the floor.
Worked example 3: a Hoskote plot sold below guidance value
Illustrative. A 1,200 sq ft plot on the Hoskote Town (M V Extension) line: guidance value 1,200 × ₹2,323 = ₹27,87,600.
| Agreed at ₹25,00,000 | Agreed at ₹26,00,000 | |
|---|---|---|
| Duty base | ₹27,87,600 (GV is higher) | ₹27,87,600 (GV is higher) |
| Charges at 7.6% | ₹2,11,858 | ₹2,11,858 |
| Seller: is GV within 110% of price? (s.78) | No (110% = ₹27,50,000) → GV deemed the sale price | Yes (110% = ₹28,60,000) → price accepted |
| Buyer: GV excess over price | ₹2,87,600 | ₹1,87,600 |
| Buyer: taxable if excess > higher of ₹50,000 or 10% of price (s.92(2)(m)) | Yes: ₹2,87,600 > ₹2,50,000 → taxed as other income | No: ₹1,87,600 < ₹2,60,000 |
Sources: Income-tax Act, 2025 (Act 30 of 2025), s.78(1) and s.92(2)(m), in force from 1 Apr 2026 (PIB). A ₹1 lakh difference in price moves both sides across the line. (Hoskote town is a municipal area, where the surcharge is 2% of duty, so 7.6% applies; in a panchayat area it's 3% of duty, which makes 7.65% (CAG Stamp Duty and Registration Manual, §7.4).)
The floor, buffer, flag ratio (our framework)
Divide the agreed price by the guidance value for the exact gazette line.
| Price ÷ guidance value | Zone | What happens |
|---|---|---|
| 1.0 or above | Floor cleared | Duty on your price. Guidance value is irrelevant to duty; compare instead with registered values in the same building |
| About 0.91 to 1.0 | Buffer | Duty on the guidance value. Income-tax deeming usually doesn't apply, since GV is within 110% of price (watch the ₹50,000 minimum on small deals) |
| Below about 0.91 | Flag | Duty on the guidance value, and both the seller's sale price and the buyer's income can be adjusted to it. Talk to a CA before signing |
Two more sense checks. A price far above the floor isn't wrong in itself, since most of the east is at 1.3 to 3.2 times. But if a resale listing is at three times the line while past registrations in the same building (on Kaveri encumbrance certificates) sit near twice, ask why.
How should you use this before buying?
- Find your exact line on Kaveri's guidance value search: district, taluk, hobli, then village, road or project.
- Convert carpet to super built-up (× 1.25) for a flat before multiplying.
- Work out the ratio (price ÷ guidance value) and place it in the zone table.
- Pull recent registered values for the same building from encumbrance certificates.
- Budget duty on the higher value, using the stamp duty and registration calculator.
- Check TDS: it applies at ₹50 lakh or more of the higher of price and stamp duty value (TDS on a flat purchase).
- If a revision is notified before you register, recompute; the value on the registration date applies.
What mistakes do buyers make with guidance value?
- Taking a portal's "guidance value" instead of the gazette line.
- Using carpet area for a flat when the rate is per super built-up area.
- Assuming a hike raises your duty. In most of the east, your price is already well above it.
- Agreeing a low "registration value" and paying the rest in cash. Duty is still on the higher value, and the gap is a legal and tax risk for both sides.
- Ignoring the tax rules on plots priced below the floor.
What should you do if...
...the seller wants to register below the guidance value? You can't. Duty is charged on the guidance value anyway, and the tax rules above may apply.
...the bank's valuation is lower than your price? Your loan is based on the bank's valuation and RBI's loan-to-value limits, so you'll fund the gap yourself. Duty still follows the higher of price and guidance value.
...a revision is announced? Check whether it's been notified and from what date. Registrations after that date use the new value.
Method notes and limits
- Guidance values: Karnataka Gazette Part III, 30 Sep 2023, in force 1 Oct 2023, read from OpenCity copies of the IGR circulars. Site lines read by hand; the Mahadevapura apartment median (n = 172) is acre&key's approximate parse of gazette pages 130 to 186.
- Market prices: Knight Frank H1 2026 (July 2026) locality ranges and ANAROCK Q1 2026 quoted base rates. These are consultant figures, mostly for new supply, not registered transaction values.
- Not done: no registered-sale sample, no plot market series, no Sarjapur Road or Hoskote apartment parse. These are open items.
- No projects or builders are named.
Related reading
Frequently asked questions
Guidance value is the government's notified floor for each property, used to charge stamp duty. Market value is what buyers actually pay. In East Bengaluru, Knight Frank's H1 2026 flat prices run about 1.3 to 3.2 times the Mahadevapura median apartment guidance value of ₹4,854 per sq ft.
Flats are notified per sq m of super built-up area, mostly project by project. Across 172 apartment entries we parsed for the Mahadevapura sub-registrar area, the median was ₹52,250 per sq m, about ₹4,854 per sq ft, with a middle range of ₹4,435 to ₹5,130.
On the higher of the two, under section 45-A of the Karnataka Stamp Act. For most East Bengaluru flats, the agreed price is well above the guidance value, so duty is charged on the price. On some outer-area plots, the guidance value can be the higher figure.
You can agree a lower price, but duty is charged on the guidance value. Under the Income-tax Act 2025, if the guidance value exceeds 110% of the price, it's treated as the seller's sale price (s.78), and the buyer may be taxed on the excess (s.92(2)(m)).
A revision has been reported: 12% to 15% in February 2026 and up to 35% in October 2026 news reports. Neither had been notified as of mid-October 2026. Even a 35% rise would keep the Mahadevapura apartment median below Whitefield's lower market range.
Guidance values were last revised from 1 October 2023, while market prices kept rising. Knight Frank reports 12-month rises of 14% in Whitefield, 15% in Marathahalli and 20% in KR Puram to H1 2026.
Not directly. Banks lend against their own valuation and RBI's loan-to-value limits, so a low guidance value doesn't cap your loan. It does set the minimum duty base, and stamp duty and registration charges aren't financed for loans above ₹10 lakh.
On Kaveri Online's guidance value search, by district, taluk, hobli and village or area under your sub-registrar office. Find your road, layout or project line, convert a flat's carpet area to super built-up, and confirm with the sub-registrar before paying.
CA note: The income-tax effects above (s.78, s.92(2)(m), TDS) are general. Your own position depends on the dates, payment mode and facts of the deal, so check with a chartered accountant before you agree a price below or close to the guidance value.
Lawyer note: Guidance value lines and duty base are general information. Confirm with a property lawyer or the sub-registrar office before paying or registering.
Sources
Checked 19 Oct 2026.
- Karnataka Gazette Part III, 30 Sep 2023, guidance value revision for Bengaluru registration districts (in force 1 Oct 2023), via OpenCity copies of IGR circulars: https://data.opencity.in/dataset/bengaluru-guidance-value-change-circulars-2023
- Knight Frank, India Real Estate: Office and Residential Market H1 2026, "Residential price movement in select locations" (Bengaluru): https://content.knightfrank.com/research/3116/documents/en/india-real-estate-office-and-residential-market-h1-2026-12927.pdf
- ANAROCK, Bengaluru Q1 2026 Residential Market Viewpoints: https://websitemedia.anarock.com/media/Bengaluru_Q1_2026_Residential_Market_Viewpoints_84d41ec09a.pdf
- Income-tax Act, 2025 (Act 30 of 2025), ss.78 and 92(2)(m), Gazette of India: https://egazette.gov.in/WriteReadData/2025/265620.pdf
- PIB, Income-tax Act 2025 in force from 1 Apr 2026: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2248005&lang=1®=3
- Karnataka Stamp Act 1957, s.45-A: https://dpal.karnataka.gov.in/
- CAG, Stamp Duty and Registration Manual (2020), §7.4 surcharge rates: https://saiindia.gov.in/uploads/media/Stamp-Duty-and-Registration-Manual-20200914191933.pdf
- The New Indian Express, 21 Feb 2026 (news): https://www.newindianexpress.com/states/karnataka/2026/Feb/21/guidance-value-yet-to-be-hiked-by-15-across-karnataka-expect-property-rates-to-go-up
- The Hans India, 12 Oct 2026 (news): https://www.thehansindia.com/news/cities/bengaluru/karnataka-mulls-35-hike-in-property-guidance-values-1131499
