What is circle rate (guidance value) and how is it different from market value?
Circle rate (also called guidance value in Karnataka) is the minimum price per sq.ft. set by the state government for property transactions in each locality. Stamp duty is calculated on circle rate or agreement value, whichever is higher. Market value is the actual price buyers and sellers agree to in the open market — it is usually 10–40% above circle rate in high-demand localities like Whitefield or Sarjapur Road. In low-demand areas, market value may equal or even fall below circle rate.
How do I calculate the fair value of a flat in Bangalore?
Fair value for a flat = Carpet area (sq.ft.) × Market rate per sq.ft. (carpet). The market rate per sq.ft. is best estimated by: (1) Looking at comparable sold transactions in the same locality (Kaveri SRO deed data). (2) Checking NHB RESIDEX index for the locality's quarterly price trend. (3) Surveying asking prices on 99acres/MagicBricks and applying a 5–10% negotiation discount. (4) Checking Brickplot's locality page for the median carpet PSF in the area. For new launches, compare the builder's declared carpet area and price per sq.ft. carpet against these benchmarks.
What is NHB RESIDEX and how do I use it for property valuation?
NHB RESIDEX is the National Housing Bank's quarterly residential price index, covering 50+ cities in India. It tracks QoQ and YoY price movements for apartments in key localities. The index uses actual registered transaction data, making it more reliable than asking prices. Access it at nhb.org.in or use Brickplot's locality pages (which ingest RESIDEX weekly). A RESIDEX growth above 5% QoQ may indicate a hot micro-market; below 0% signals oversupply or buyer caution.
What is a good rental yield for a flat in Bangalore in 2026?
Gross rental yield = Annual Rent / Property Value × 100. In Bangalore (2026 benchmarks): Whitefield: 3.2–3.8%, Sarjapur Road: 2.8–3.5%, Indiranagar: 2.5–3.2%, Hebbal/Yelahanka: 3.0–3.6%, Electronic City: 3.5–4.2%, Devanahalli: 2.2–2.8%. Net yield (after maintenance, property tax, vacancy) is typically 0.7–1% lower. A gross yield above 3.5% in Bangalore is considered good; below 2.5% suggests the property is priced primarily for capital appreciation, not income.
How is carpet area priced differently from super built-up area?
Carpet area is the actual usable floor area of the flat (measured from inner wall to inner wall). Super built-up area includes the carpet area + wall thickness + balcony + proportionate share of common areas (lobby, lift, corridors, gym). Builders traditionally quote price per sq.ft. on super built-up area. Under RERA, they must now quote on carpet area. If a builder quotes ₹8,000/sq.ft. SBA and the loading is 30%, the equivalent carpet rate is ₹8,000 × 1.30 = ₹10,400/sq.ft. carpet. Always compare on carpet area per sq.ft. for apples-to-apples comparison.
How does Brickplot score the value and price trajectory of a project?
Brickplot's Axis 7 (Value & Price Trajectory, weight: 9) assesses: (1) Price per sq.ft. carpet vs locality median (from NHB RESIDEX and SRO deed data). (2) Whether the project is priced at a premium that is justified by amenities and RERA compliance. (3) Historical price appreciation in the micro-market (NHB RESIDEX QoQ trend). (4) Resale demand signals (SRO deed velocity, 99acres/MagicBricks listing days). A high Axis 7 score means the project is fairly valued or underpriced for its quality; a low score means you are paying a significant premium.
What is the difference between LTCG and STCG on property sale in India?
Long-Term Capital Gain (LTCG): If you hold the property for more than 2 years (changed from 3 years per Finance Act 2024), the gain is taxed at 12.5% without indexation (flat rate from FY 2024-25). Short-Term Capital Gain (STCG): If held for 2 years or less, the gain is added to your income and taxed at your income tax slab rate. LTCG exemption under Section 54 allows you to reinvest proceeds in another residential property within 2 years (or 3 years if under construction) to avoid LTCG tax.
What is the impact of FSI/FAR on a project's value?
FSI (Floor Space Index), also called FAR (Floor Area Ratio), is the ratio of total built-up area to the plot area. Higher FSI = more flats built on the same land = more supply, which can dilute per-unit land value. However, higher FSI in premium locations (e.g., Bengaluru's Transit-Oriented Development zones near metro) can increase project viability and lift amenity quality. Brickplot displays the FSI used vs the permitted FSI on project pages — projects using less than the maximum FSI have development upside potential.
How do I compare the value of a pre-launch vs ready-to-move flat?
Pre-launch pricing is typically 15–30% below the expected RTM price — this discount is your compensation for construction risk, time value of money (capital locked for 3–5 years), and delivery uncertainty. RTM premium is justified by: zero construction risk, immediate rental income, verified OC, and established neighborhood. The breakeven: if a pre-launch at ₹8,000/sq.ft. is expected to be RTM at ₹10,000+ in 4 years (25% appreciation), it is attractive. Below 15% total appreciation over 4 years for pre-launch, RTM may be better.
What price appreciation has Bangalore seen in 2024–2026 across key localities?
Bangalore saw significant residential price appreciation driven by IT sector demand and infrastructure upgrades. NHB RESIDEX data (2024–2026): Whitefield: +18–22%, Sarjapur Road: +15–20%, Devanahalli (near airport): +22–28%, Yelahanka: +12–15%, Electronic City: +10–14%, Hebbal: +16–20%, Indiranagar: +8–12%. Luxury segments (Koramangala, JP Nagar, Jayanagar) appreciated 10–15% driven by land scarcity rather than IT demand. East Bangalore corridors led appreciation due to tech park proximity and metro Phase 2/3 announcements.