Extend rebate on property guidance value to boost buyer sentiment: Real estate developers tell Karnataka govt

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The representatives of the real estate sector during a recent meeting of the Central Valuation Committee (CVC) urged the government to extend the scheme providing a reduction of 10 per cent on property guidance value for another three to six months. Notably, the government announced the guidance value discount for three months starting January and later extended it till July 25.
Real estate developers argued that potential customers might not prefer to buy properties during Ashada Masa, which is considered inauspicious for making investment or buying property by a section of society.
Speaking to indianexpress.com, Bhaskar T Nagendrappa, president, CREDAI-Bengaluru, said: “During Ashada Masa, the business would not be so great for the real estate sector and reduction in the guidance value has already paid dividends. The government should consider extending it for a few more months which will help business as well as increase revenue for the government.”
However, an official in the finance department said that the reduction in the guidance value would have financial implications in the long run. While the guidance value is the minimum selling price of a property based on the locality, the government earns revenue by imposing stamp duty and registration charges as a percentage of the amount. The properties priced below Rs 45 lakh attract 3 per cent stamp duty, while others attract 5 per cent in addition to 1.5 per cent registration charges.
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