Industry experts expected more relaxations in housing sector

Bengaluru: In order to promote affordable housing, the state government has announced that the Stamp Duty for the first registration of apartments valued between Rs.35 lakh and Rs.45 lakh is proposed to be reduced to 3% from 5%.

"The revenue collection target of Rs.12,655 crore is given to the Stamps and Registration Department for the year 2021," the CM Yediyurappa announced.

"The revenue collection target for the Stamps and Registration Department for the year 2020-21 was fixed at Rs.12,655 crore and a revenue of Rs.9,014 crore is mobilized by the end of February. The revenue collection target of Rs.12,655 crore is given to the Stamps and Registration Department for the year 2021-22," he added.

Reacting to the budget Anuj Puri, Chairman – ANAROCK Property Consultants said that the move though carry a feel good factor it is not likely to give a significant boost to housing sales in Bengaluru on the lines of Mumbai which saw a major boost in sales due to limited-period stamp duty cuts last year.

"Maharashtra had reduced stamp duty for properties across all budget segments - not just one category. The fact is that housing demand in Bengaluru is largely skewed towards the mid segment, involving properties priced within the Rs 50 lakh to Rs 1 Crore budget range. For these properties, the stamp duty charges remain the same at nearly 5%.

As per ANAROCK Research, Bengaluru presently has total unsold stock of nearly 59,350 units across all budget segments. Of this, just 24% is within the Rs 45 lakh price bracket, while 64% is within Rs 45 lakh to Rs 1.5 crore budget range. In other words, the cut within Rs 35 lakh to Rs 45 lakh budget may not have a significant impact," Puri added.

Rajendra Joshi CEO Residential Brigade Enterprises ltd welcomed the move adding that it would have been far more beneficial if it was extended to other segments as well.

"While the stamp duty benefit has been currently declared for the fiscal year 2021-22, we need to keep in mind that the cycle of planning to 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. We urge the Government to also consider the mid-segment and provide similar benefits for homes below one crore," he added.

Prashanth Reddy, Managing Director, Fundermax India has given 8 out of 10 score to the budget.

"It is Positive and encouraging especially during this covid times starting with schemes towards doubling farmers income, setting of new Industrial parks and supporting Atma Nirbhar Abhyan, reduction of stamp duty towards affordable housing and also has many initiatives for women coinciding with International women's day.

Was expecting some relief on fuel by reducing some levies which it seems has to wait for some more time."