KARNATAKA GOVERNMENT: THE DECISION TO CUT DOWN ON STAMP DUTY WILL HELP REAL ESTATE

Out of the major cities in India which are developed, have the best overall facilities – be it transportation, health care, education, or entertainment, Bangalore is one such city. With the boost in the real estate sector after a decade-long dip, Bangalore has been capitalizing on this opportunity. In creating amazing projects in the real estate sector, the government too is trying to help with this. In a recent meeting, a huge decision was taken to approve the proposal to cut down on stamp duties on properties which are costing 45 lakhs and more.

As per the expectations, the stamp duties have been cut down by 2% and have now gone down from 5% to 3%. This decision will surely serve as a boost for the real estate sector and is expected to grow the demand for properties and ultimately increase the profits and economy from the same. It can be easily recalled that in last year May, post the implementation of lockdown, the stamp duties were slashed for housing in the price range of Rs 21 lakhs to Rs 35 lakhs. While the initial decision was to put a cap on stamp duties of housing till Rs 20 lakhs only, but soon the government realized that it wasn’t possible to find homes in such a price range in urban cities like Bangalore.

The government after realizing this made the decision to increase the housing price range from Rs 20 lakhs to Rs 35 lakhs and later on to Rs 45 lakhs. This would give people a chance to look for their ideal homes with a little concession on stamp duties. Although, the companies and real estate developers feel that though the changes are a positive initiative and will surely help the real estate sector, it will only have an overall minimal effect on the housing prices. According to sources, post the second wave of the Covid-19 pandemic people are skeptical over anything and are only concerned about living each day at a time.

The government is also planning to form a committee that will look into matters to reduce the guidance value of housing throughout the state. The companies and developers are also demanding to reduce the government-approved rates as this will help the developers to have a better chance and dynamics with the customers. In a recent interview, law minister Basavaraj Bommai stated that “since there have been demands from various sections of the society to reduce the guidance value, the government has decided to form a committee regarding the same and it will look into all such matters”.

The government is also trying various moves and creating various opportunities amidst this lockdown. The government made an announcement to build as many as 5 lakh houses – 4 lakh for the rural part of the state of Karnataka and 1 lakh for the urban part of the state of Karnataka. These houses will be constructed under various projects and people be avail the opportunity of owning a house for themselves. This project is expected to be completed in the next couple of years and is expected to cost around Rs 8,000 crores.

With so much happening around the globe, coming up with such opportunities gives a chance at exploring new options and people can avail themselves at better prices.

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