The global economic recession has affected the purchasing power of a large number of people and thereby the real estate industry throughout the country, including Bangalore, is facing unprecedented sufferings. At this juncture, the decision of the Government of Karnataka in its budget for 2009-10 to reduce the stamp duty on registration of immovable properties is welcome.
By reducing the stamp duty on registration of properties, the Government of Karnataka has attempted to give new lease of life to the real estate industry, when we cumulatively consider the effect of the discount offered by the developers in the value of apartments by 15 to 20 per cent with other lucrative incentives coupled with the reduction in the interest rates by the banks on home loans.
But, the property buyers would have got the real gift from the Government of Karnataka had it brought down the guidel ines value of properties keeping in mind the present market trend. The guidelines values now in force were fixed when the real estate market and the property values were at their peak. Thus the Government may constitute a committee of experts to look into this aspect and recommend the fair guidelines value to be fixed for properties III different localities of Bangalore and its suburbs.
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