Raipur: In a significant move towards enhancing transparency and simplifying the property valuation process, the Central Valuation Board held an important meeting to review and address suggestions, memorandums, and proposals regarding the revision of guideline rates in the state. The board’s decisions, which came into effect immediately, aim to streamline the real estate sector, improve urban development, and provide convenience to the common public.
End of Incremental Valuation for Small Land Parcels
One of the key changes announced during the meeting is the termination of the incremental valuation system for plots up to 1400 square meters in urban areas. Under this decision, the previous provisions will be reinstated, which include slab-based valuations for different municipal regions. Specifically:
- In Municipal Corporation areas, properties will be evaluated at 50 decimal.
- In Municipalities, the slab will be 37.5 decimal.
- In Nagar Panchayats, properties will be evaluated at 25 decimal.
This revision is expected to simplify the property valuation process while increasing transparency in urban land transactions, ensuring that citizens have a clearer understanding of land valuation.
Change in Valuation for Multi-story Buildings
The Central Valuation Board also took a significant step in simplifying valuation for multi-story buildings, which have long been subject to complex methods for calculating market value based on super built-up areas. Under the new provisions, the market value of flats, shops, and offices in multi-story buildings will now be calculated based on the built-up area rather than the super built-up area, a practice that had been in place since the time of the Madhya Pradesh Government.
This change has been long-awaited, as it aims to make the valuation more accurate and fairer for buyers and sellers. With this adjustment, the government hopes to accelerate vertical development and ensure better utilization of urban land.
New Discounts for Commercial Complexes and Multi-story Buildings
In a move designed to make commercial and residential spaces more affordable, the Central Board has also introduced new discount provisions for multi-story buildings and commercial complexes. For instance:
- A 10% discount will be applied to properties located on the basement and first floors.
- A 20% discount will be applied for properties located on the second floor and above.
These discounts are expected to provide much-needed relief to the middle class, making flats and commercial spaces more affordable. The board also introduced a 25% discount on the valuation of properties located more than 20 meters away from the main road in commercial complexes, ensuring a more equitable and realistic valuation based on the actual property location.
Revaluation Proposals for Recent Rate Increases
The meeting also directed district-level evaluation committees to review any recent objections, memorandums, and suggestions related to the recent increase in guideline rates. These committees have been asked to submit proposals for the revised guideline rates by 31st December. The Central Valuation Board will then analyze these proposals and finalize the new guideline rates, keeping in mind the needs of the public, urban development goals, and real estate stability.
Immediate Implementation of New Decisions
All of the revised provisions have been implemented immediately, with the aim of bringing stability, transparency, and affordable housing to the state’s real estate sector. With the new guidelines, the government aims to strike a balance between urban development, ease of property transactions, and the needs of common citizens looking for affordable housing.
Impact on the Real Estate Sector
These decisions are poised to have a far-reaching impact on the state’s real estate sector. The simplification of valuation methods is expected to reduce the complexity and time delays associated with property transactions, benefiting both buyers and sellers. The discounts on multi-story buildings and commercial complexes will further boost the sector by making these spaces more accessible to a wider population.
By focusing on affordability and transparency, the state government hopes to ensure that the real estate sector remains stable and grows in a way that benefits both the economy and the citizens of the state.
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