Raipur
The Central Valuation Board (CVB) convened a meeting after extensively examining suggestions, memorandums, and proposals concerning the revision of guideline rates and provisions in the state. The CVB took several key decisions to facilitate urban development, real estate sector, and convenience of common citizens. All new decisions took effect immediately.
Revisions for Urban Property Calculation
The board scrapped the current system of calculating incremental rates for plots up to 1,400 square metres in urban areas. Prevailing provisions have been reinstated:
- Valuation will now be calculated on a slab rate for plots up to 50 decimal in Nagar Nigam areas.
- The limit is set at 37.5 decimal for Nagar Palika areas.
- The limit is set at 25 decimal for Nagar Panchayat areas.
This change simplifies the valuation process and boosts transparency.
Valuation Based on Built-Up Area
The board removed the provision that calculated the market value of flats, shops, and offices in multi-storey buildings based on super built-up area. Valuation will now be calculated based on the built-up area.
This provision was in force since the time of the Madhya Pradesh government, and stakeholders had long demanded its reversal. The new provision is expected to accelerate vertical development and ensure more effective utilisation of urban land.
Concessions for Multi-storey Buildings and Commercial Complexes
The CVB also introduced new provisions for concessions in the valuation of multi-storey buildings and commercial complexes:
- Valuation will include a 10 per cent reduction for the basement and ground floor.
- A 20 per cent reduction will apply to the second floor and all upper floors.
This move aims to help the middle class by making flats and commercial spaces available at more affordable rates.
Concessions for Remote Commercial Properties
The board mandated that plots for properties located beyond 20 metres from the main road in commercial complexes will be valued with a 25 per cent reduction in the land rates. The 20-metre distance will be assessed from the constructed portion facing the main road, allowing for a more equitable valuation based on the actual ground situation.
District Committees Directed to Submit Proposals
The Central Valuation Board directed all District Valuation Committees to review objections, memorandums, and suggestions received following the recent rate hike. The committees must submit their proposals for revising guideline rates by 31 December. The board will analyse these proposals and take a final decision on the upcoming guideline rates.
The immediate implementation of all these decisions is expected to provide a new direction to efforts aimed at ensuring stability, transparency, and affordable housing in the state’s real estate sector.
