Karnataka Cuts Stamp Duty On Flats To Boost Property Sales
<span style="font-weight: 400;">Karnataka chief minister B S Yediyurappa, who holds the finance portfolio, presented the state budget for the fiscal year 2021-22 and said that the stamp duty for apartments valued between ?35-45 lakh has reduced to 3% from 5%. Karnataka chief minister, who holds the
Published -
Mar 25, 2021 8:23 AM
Karnataka chief minister B S Yediyurappa, who holds the finance portfolio, presented the state budget for the fiscal year 2021-22 and said that the stamp duty for apartments valued between ?35-45 lakh has reduced to 3% from 5%. Karnataka chief minister, who holds the finance portfolio, presented the state budget, his eighth in the legislative assembly, for the fiscal year 2021-22 in the Assembly on Wednesday. "To promote affordable housing, the stamp duty for the first registration of apartments valued between ?35 and ?45 lakh is proposed to be reduced to 3% from 5%," he said. While the move does carry a feel-good factor, it is not likely to give a significant boost to housing sales in Bengaluru on the lines of what we saw in Mumbai. Maharashtra had reduced stamp duty for properties across all budget segments - not just one category. “Listed companies focused towards the Bengaluru market are unlikely to gain from this decision. The average ticket size of apartments sold by listed companies in key areas is around ?60 lakhs. There might be some traction in the realty projects which are situated at the outskirts, but otherwise this is not a game changer," said analysts. It should be noted that in May 2020, the Karnataka government had reduced the stamp duty charges from 5% to 3%, for properties in the range of ?21-35 lakh. Research by real estate consultancy Anarock Property Consultants, shows that Bengaluru presently has a total unsold stock of nearly 59,350 units across all budget segments. Of this, just 24% is within the ?45 lakh price bracket, while 64% is within ?45 lakh to ?1.5 crore budget range. “In other words, the cut within ?35 lakh to ?45 lakh budget may not have a significant impact," said its chairman Anuj Puri.
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