Bangalore: Key Policy Changes Suggested By Real Estate Developers
Reduction in stamp duty and property registration fees, reduction in guidance value for two years, and digitizing the property registration process – these are the three major policy changes suggested by the real estate developers in Bangalore that has come under severe pressure due to the Coronavirus epidemic.
The real estate industry in India is severely affected by the coronavirus epidemic, where there is a drop in sales, supply chain disruptions, and labor shortages, but the real estate industry is still believed to retreat with government support.
The panel comprised five representatives from the real estate sector – Reeza Sebastian, president (residential business) at Embassy Group, Avinash Rao, president (Sales, Marketing & CRM) at Provident Housing Ltd, Kishore Jain, MD of Jain Heights and President of CREDAI Bengaluru, Venkat K. Narayan, CEO at Prestige Group, and Rajendra Joshi CEO (residential) at Brigade Group had one common demand i.e. reduce stamp duty and guidance value of properties that have posed stiff challenges to them.
Stamp Duty Reduction for Women
Reza Sebastian, president (residential business) of the Embassy Group, advised the government to come up with differential pricing of stamp duty based on gender. The stamp duty in Delhi is 6% for men and 4% for women. In Haryana too, the stamp duty is 8% for men and 6% for women in urban areas. This will bring change in untouched areas of our society.
House With Righ Size
Two panelists said that the pandemic and the work-from-home culture have forced families to rethink the size of the house they should live in. As per Venkat K. Narayan, CEO at Prestige Group, those who were eligible to buy a 2BHK house is now looking at a 3BHK. Hence, Bengaluru will be the first city to recover from the pandemic situation. Many families want to live in a better home and a better society with amenities that will safeguard them from a pandemic.
Property Prices Will Not Decrease
The panelists were united in their opinion that property prices would not fall and that low launches could lead to price increases and increased demand from home buyers.
Kishore Jain, MD, Jain Heights, and President of CREDAI Bengaluru, said the risk of disappearance of sector commands is a premium. Post COVID-19, workers are not back. The supply chain has been disrupted, and cement prices have gone up. The reduction in interest by banks has only been passed on to home buyers and not to developers.
