Karnataka government has decided to slash the property guidance value across the state by 10 percent for another three months from April 25 to July 24. “As there is demand from the people, it has been decided to slash the guidance value for another three months between April 25 and July 24 by 10 percent.
This will be applicable for sale and purchase of all kinds of properties. Orders are being issued in this regard after discussions with Chief Minister Basavaraj Bommai,” Ashoka said. The guidance value is the minimum selling price fixed by the government on property depending on the locality and type of structure.
Sathish Kumar M, president, NAREDCO (National Real Estate Development Council) Karnataka, said that this step in principle is a welcome one and will motivate people to complete their transaction as early as possible. In the past, from January-March, whenever the incentive was given, there was a rise in the sales numbers.
However, guidance value per se is on the higher side. The government has reduced the stamp duty on the guidance value but if it reduces the guidance value it will be more appropriate, Kumar said, adding that it should be brought down by at least 5-10 percent.
On their part, homebuyers said the cut in property guidance value will not help them. The government should try and restore the level of trust among homebuyers due to the poor enforcement of the Real Estate (Regulation and Development) Act and encourage them to invest in the property market, said M S Shankar, general secretary, Forum for People’s Collective Efforts, a group of homebuyers across the country. It should call for a joint meeting with all stakeholders, he added.
