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Jayanagar Deal Stuns Realty Biz.....
http://www.newindianexpress.com/cities/ ... 020871.ece

From the Indian Express...

ByNR Madhusudhan - BANGALORE Published: 26th January 2014 07:47 AM

A plot in Jayanagar 4th Block has just been sold for `55,000 a sq ft,
leaving even the fabulously rich real estate sector gaping in disbelief.

The plot is on 11th Main, near the Jayanagar Swimming Pool, where houses at
least four decades old are being razed to make way for glitzy lifestyle
shops.

Jayanagar, regarded as one of Asia's most beautiful neighbourhoods, was
built in the 1960s, and many of its streets have turned into hubs of
commerce.

With deals such as this one, sylvan Jayanagar has beaten snooty M G Road to
emerge as the costliest business area in Bangalore.

A 40x60 ft site on 11th Main recently went for about Rs 13.2 crore, which
comes to `55,000 a sq ft. Buyers are paying stunning premiums for location
and rental potential; in their perspective, the old structures here are
worthless, only fit for demolition.

and what is the guidance value there ?

Its not clear, whether the registered value is for Rs. 55,000/sq.ft against Govt Guidance value of Rs. 11,000/- as no one would like to disclose the transaction value if its so difference. If this is a genuine transaction value, definitely Income tax dept would have raided both the Seller and Buyer by this time.

As I remember, just few months back, when Captain Gopinath(erstwhile Air Deccan Founder) sold his property at Vittal Malya Road near to UB City
and the very next week same property was sold to another party for around 30% extra value(that too Registered value), Income Tax dept investigated that deal about the source of money of the buyer.

So this could be another media hype also backed by the real estate tycoons in order to jack up the moderating Real estate Sector.