by Sekhar Pal 
Coimbatore, also known as the Manchester of South India, is a fast-growing city with a booming real estate market. If you are planning to buy or sell a land or plot in Coimbatore, it is important to understand the concept of guideline value and how it affects property transactions in the city.
Guideline value, also known as circle rate or government value, is the minimum value at which a property can be registered for legal purposes. It is determined by the government and is used to calculate stamp duty and registration charges during property transactions.
The guideline value of lands and plots in Coimbatore is determined by the Tamil Nadu government’s Revenue Department. It is revised periodically based on various factors such as location, infrastructure development, demand, and market conditions.
The guideline value is calculated per square foot or per cent (approximately 435.6 square feet). The rates vary for residential, commercial, and agricultural lands. It is important to note that the guideline value is not the market value of a property, but rather a reference value for taxation purposes.
When buying or selling a land or plot in Coimbatore, it is essential to consider the guideline value. If the transaction value is lower than the guideline value, the stamp duty and registration charges will be calculated based on the guideline value. However, if the transaction value is higher than the guideline value, the stamp duty and registration charges will be calculated based on the transaction value.
It is advisable to consult a registered valuer or a real estate agent to get an accurate estimate of the guideline value for a specific property in Coimbatore. They will consider various factors such as location, amenities, infrastructure, and market trends to determine the approximate guideline value.
Knowing the guideline value is crucial for both buyers and sellers. For buyers, it helps in understanding the minimum value at which a property can be registered and the associated stamp duty and registration charges. For sellers, it helps in setting a realistic price for the property and avoiding any legal complications during the transaction.
It is important to note that the guideline value is subject to change. The government revises it periodically based on market conditions and other factors. Therefore, it is advisable to stay updated with the latest guideline value before entering into any property transaction in Coimbatore.
