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Karnataka's property market isn't going through the best of days right now. While a gazillion little things could ease the situation for the sector, the only true remedy for sustained growth is an uptick in demand.
Again, numerous things could increase demand for property but none can, like a drop is price.
Is That Coming?
Yes. Primary (new homes being built and sold for the first time) market players in Karnataka can now rejoice as the state assembly just passed a bill slashing stamp duty by 2% on affordable apartments.With this latest amendment to the Stamp Act, 1957, the stamp duty payable on flats priced between INR 35 lakh and INR 45 lakh is slashed to 3%. The 2% reduction, however, is applicable only on first-time registration/primary sales.
Karnataka Revenue Minister R Ashoka said that lakhs of flats in Bengaluru and in other cities remain unsold due to the distress caused by the Covid-19 pandemic.
The stamp duty reduction will help both the real estate sector, which is struggling with a pile of unsold inventory, as well as families looking for affordable homes.
Nope. The Karnataka government had amended the law in December 2020 to levy a reduced stamp duty of 3% for apartments priced between INR 20 lakh and INR 35 lakh.
Prior to that, in the 2020 state budget, the Chief Minister had slashed the stamp duty on purchase of new apartments priced below INR 20 lakh to 2%.
Is It Enough?
Is It Enough?
Senior Congress member MB Patil urged the government to provide bigger relief along the lines of Maharashtra, which has slashed stamp duties regardless of the apartment's price tag.