‘Stamp duty revision will create buoyancy in market’

Karnataka budget brings a slight respite to the worst business casualty of the pandemic: the real estate sector.

It is clear that the State government wants to infuse some buoyancy in the sector as it has a fixed revenue collection target of ₹12,655 crore for the Stamps and Registration Department for fiscal 2021-22.

On the stamps and registration front, the State proposes to reduce stamp duty from 5% to 3% on first registration of apartments valued between ₹35 lakh and ₹45 lakh to promote affordable housing, a proposal to attract new home buyers to the market.

Welcoming the proposal, Sarita Hunt, MD, Bangalore, Savills India, said, “This will be a much-required booster for the residential real estate sector in Karnataka, especially for affordable housing. The revision of stamp duty to 3% will benefit the fence-sitters and encourage buyers. Such a move positively impacted the home buying trend in Maharashtra, and we hope to see a similar result in Karnataka as well.”

According to Rajendra Joshi, CEO Residential Brigade Enterprises Ltd., the reduction in stamp duty for apartments priced between ₹35 lakh and ₹45 lakh will bolster the affordable segment. However, it would have been far more beneficial if it was extended to other price segments as well.

“While the stamp duty benefit has been currently declared for fiscal 2021-22, we need to keep in mind that the cycle of planning, execution to registration of properties is significantly longer. It would definitely help the real estate sector if this benefit could be announced for a period of three to five years, as it will help developers modify their product mix as well as help consumers plan their finances and purchase decisions better,” he added.

Bijay Agarwal, MD, Salarpuria Sattva, said, “Incentives like these will help developers who plan to foray into this specific segment, and in riding out the post-pandemic growth curve.”

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Printable version | Apr 17, 2021 10:13:31 PM |

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