Real estate companies are supported by the reduction of stamp duties in the Karnataka budget 2021-22.
On Monday, Chief Minister BS Yeddiyurappa, during the presentation of the budget for the 2021-22 fiscal year, said the government, in an effort to promote affordable housing, was lowering the stamp duty to 3 percent from 5 percent. cent for the first registration of apartments valued between â¹ 35 lakh and â¹ 45 lakh.
According to Anarock Research, Bengaluru has a total unsold inventory of nearly 59,350 units across all budget segments. Of this total, only 24% is in the 45 lakh price range, while 64% is in the 45 lakh budget range to â¹ 1.5 crore.
Ashish R Puravankara, Managing Director of Puravankara Limited, said: âThis move will create positive feelings for buyers and push several fence keepers who have been waiting for a lucrative opportunity to invest. This move will stimulate demand for affordable homes in the state and encourage new projects in this category, further motivating the buyer with more options to choose from. “
“Although it would have been a pleasure if the same reduction were applicable to all segments and not limited to only houses between 35 and 45 lakhs,” he added.
Boost for affordable homes
Rajendra Joshi, CEO of Residential Brigade Enterprises, “Reducing the stamp duty for apartments priced between 35 and 45 lakhs is a welcome move as it will strengthen the affordable segment. It would have been much more beneficial to expand it to other segments as well, given the increasing rate of expansion not only in Bengaluru but also in the rest of the state. have to keep in mind that the cycle from planning to execution to registration of properties is significantly longer. It would certainly help the real estate industry if this benefit could be advertised for a period of three to five years, as it would help developers change their product line and help consumers better plan their finances and purchasing decisions. We urge the government to consider the segme as well. nt intermediate and provide similar benefits for homes under 1 crore. ”
Anuj Puri, chairman of Anarock Property Consultants, said: âWhile the move brings a feel-good factor and will strike a chord, it is unlikely to provide a significant boost to home sales in the region. Bangalore on the lines of what we saw in Bombay. Maharashtra had reduced stamp duties for properties in all budget segments – not just one category. The point is, demand for housing in Bangalore is largely skewed towards the middle segment, involving properties priced in the budget range of â¹ 50 lakh to â¹ 1 crore. For these properties, the stamp duty charges remain the same at almost 5%. ”
Niranjan Hiranandani, National President of NAREDCO, said, âThis is the price range that accounts for a significant share of sales in various micro-markets and obviously will have a positive impact on overall sales, encouraging the fence keepers. to become buyers. It was found that states like Maharashtra, which reduced stamp duties, not only saw an increase in total sales, but also a corresponding increase in the total stamp duty collected, as revenue accruing to the country. State. While 2020 saw the downturn influenced by Covid-19, the Maharashtra government’s decisions to reduce stamp duties have effectively helped offset the disruption caused by the pandemic, and NAREDO is hoping other states will follow suit. “
Sarita Hunt, MD, Bangalore, Savills India:
âThis will be a much needed accelerator for the residential real estate industry in the state, especially for affordable housing. The revised stamp duty will benefit fence guards and give a major boost to buyers of affordable housing. A similar stamp duty revision movement has had a positive impact on home buying trends in Maharashtra and we hope to see a similar outcome in Karnataka as well. Developers will also stand to gain as it will help them increase sales, sell existing inventory that has been available due to weak sales during the pandemic. “