Highest revenue in last 10 yrs between April 1-July 11 this year; experts say reduction in guidance rate helped
The real estate sector in Karnataka has finally rebounded, it would seem — between April 1 and July 11 this year, the state recorded the highest revenue generated from property registrations in the last 10 years during this time period. While 6.87 lakh documents were registered in this time period this year, revenue of Rs 4,362 crore has been collected.
Last year, 3.45 lakh documents were registered from April 1 to July 11, with a revenue of Rs 2,413 crore.
This time around, 1.81 lakh properties were registered in April, which went up to 1.96 lakh in May and 2.24 lakh in June.
According to the department of stamps and registration, this surge is due to the recent changes brought about in the Land Reform Act along with a 10% rebate on the guidance value.
“Earlier, anyone with an annual income above Rs 25 lakh could not buy agricultural land. Since this cap has now been removed, people are buying farmlands too. Moreover, a 10% rebate has been given on the guidance value after the economic slowdown due to the pandemic. This might be playing a role too. The department has also plugged leakages,” said Dr Mamta BR, inspector general of registration and commissioner, Stamps and Registration Department, Government of Karnataka.
Industry experts say the reduction in guidance rate has had a good impact. Demand for residential properties also has picked up.
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According to Suresh Hari, chairman of the Confederation of Real Estate Developers Association (CREDAI), Bengaluru, many who were waiting for normalcy used the opportunity to register their property. “The guidance rate reduction and period of the reduced rate have had a positive impact. Lots of fresh inquiries and bookings are happening. This is due to the hybrid working. This is contributing to increased rental and demand for residential spaces,” said Hari.
Experts say the market sentiments is back to more than normal. Property sales have been higher than pre-demonetisation levels.
Darshan Govindaraju of Vaishnavi Group said, “Continued relaxation of covid regulations, low home loan interest rates before the recent hike in the RBI repo rate and many projects reaching a completion stage have positively impacted customer sentiment.”