Are you wondering what real estate is like in Bangalore and Hyderabad?
In the dynamic landscape of real estate, both Hyderabad and Bangalore stand out as vibrant hubs, witnessing unprecedented growth and presenting a golden opportunity for prospective investors.
Hyderabad, one of the country’s top property markets, reported record revenue collection in July 2024. Property registrations were up over 42 per cent year-on-year, amounting to 7,501 deals. The overall figure totalled ₹4,679 crore, representing a staggering 66 per cent increase from a year ago (Source: Knight Frank India). Demand for luxury apartments in Hyderabad has been a primary driver of this growth, especially in locations such as Banjara Hills, Gachibowli, and Madhapur.
The real estate landscape in Bangalore also looks healthy, with average housing prices rising by 11 per cent year-on-year in the second quarter of 2024.
The introduction of high-end luxury apartments in Bangalore, along with the completion of metro lines in KR Puram and Whitefield, were key factors driving this increase. Consistent demand for premium projects, alongside improved infrastructure – including an expanded metro network – contributed to the rising prices. According to reports, housing prices in Whitefield increased by an impressive 16.9 per cent year-on-year (Source: Anarock Research, MagicBricks PropIndex).
As both cities continue to showcase resilience and growth in their real estate markets, this is an opportune moment for investors to explore the exciting prospects that Hyderabad and Bangalore offer.
All things considered, owning property comes with the responsibility of paying property taxes. This annual expense contributes to the enhancement of local amenities and infrastructure.
If you are wondering how to invest in property in Bangalore and Hyderabad, and how to navigate the property tax payment Hyderabad or property tax payment Bangalore process, here’s an easy and straightforward guide to help you with the GHMC (Hyderabad) and BBMP (Bangalore) property tax process.
Your Quick Guide to GHMC Property Tax
Example Calculation
For a 500 sq.ft. home, if the monthly value exceeds ₹300, a 30% tax slab applies, with an 8% library cess. As an example, the total property tax payment Hyderabad for the year could be ₹9,072.
PTIN Generation
To pay GHMC property tax, you need a Property Tax Identification Number (PTIN). New property owners can generate a PTIN online through the GHMC website or offline through the deputy commissioner’s office.
Payment Steps
Log on to the GHMC website, enter your PTIN, verify details, choose your payment mode, and receive a receipt.
Offline Payment
Visit a MeeSeva counter, Citizen Service Centre, bill collector, or State Bank of Hyderabad branch with the required documents for offline payment.
Due Dates and Penalty
Half-yearly GHMC property tax is due by 31st July and 15th October. Late payments incur a 2% monthly penalty.
Exemptions
Some properties enjoy concessions or exemptions, such as those with a monthly rental value below ₹50, properties owned by charitable organisations, and owners with an annual income below ₹5 lakh.
Your Quick Guide to Bruhat Bengaluru Mahanagara Palike (BBMP) Property Tax
To answer the question – Is real estate a good investment in Bangalore? – One must also be fully informed about BBMP’s property tax system.
Calculation Method
BBMP uses the Unit Area Value (UAV) mechanism to calculate property tax based on expected returns from a property. The formula involves factors such as rented and self-occupied areas, parking spaces, and depreciation rate. The property tax rate varies across different zones in Bengaluru.
Property Tax Rate in Bengaluru
The tax rates for rented and self-occupied properties in different zones are specified by the BBMP. Rates range from ₹5 per sq.ft. for rented properties in Zone A to ₹1 per sq.ft. for self-occupied properties in Zone F.
Tax Calculation Methods
BBMP employs three methods for property tax calculation – Annual Rental Value, Capital Value, and Unit Area System. The Unit Area System is the most commonly used in Bengaluru, involving the cost of carpet area per unit.
Paying Property Tax
The most convenient way to make your property tax payment Bangalore is online through the BBMP website. Visit bbmptax.karnataka.gov.in, enter your Property Identification Number (PID), choose a payment option, and complete the transaction. Don’t forget to download the receipt for your records.
Getting PID Online
Retrieve your PID by selecting “Citizen Services” on the BBMP website and navigating to “GIS Enabled Property Tax Information System.” Register with your primary details and mobile number to access your PID.
Forms for Property Tax Payment
Depending on the property type and changes, choose the appropriate form (Form 1 to Form 6) to complete the process.
Tax Rebate and Penalty
Paying the BBMP property tax in full before the due date qualifies you for a 5% rebate. A 2% monthly interest charge applies if the payment is delayed. Property owners can avoid interest by paying in two installments.
Downloading Tax Receipt
Access your property tax receipt online by clicking “Downloads” on the BBMP Property Tax portal. Enter the assessment year and application ID to print or save the receipt.
Offline Payment Option
For those preferring offline payment, submit the required form at a Bangalore One Centre or the Assistant Revenue Officer’s office. Various institutions are also authorised to collect property tax payment Bangalore.
Stay informed and compliant to ensure a hassle-free property tax experience!
