Karnataka Budget 2021 provides boost to Affordable Housing stamp duty slashed to boost homebuying

Dr. Niranjan Hiranandani, National President, NAREDCO, said, “The Karnataka Chief Minister Shri B S Yediyurappa has announced a reduction in stamp duty to 3 per cent from 5 per cent for apartments valued between Rs 35 lakh to 45 lakh. This is the price band that accounts for a major chunk of sales across various micro-markets, and obviously, will positively impact overall sales, by encouraging fence-sitters to turn buyers.”

“It has been seen that states like Maharashtra, which reduced stamp duty not only saw a surge in total sales, but also a corresponding hike in total stamp duty collected, as revenue accruing to the state. If 2020 saw Covid-19 influenced slowdown, the decisions by the Maharashtra Government to reduce stamp duty effectively helped counter-balance the disruption caused by the pandemic, and NAREDO hopes that other states follow suit,” he added.

“More than the numbers – the reduction from 5 to 3 per cent – such moves impact home buying sentiment positively; in turn seeing a positive domino effect on 270-plus industries which are ancillary to real estate and construction. Following the reduction in stamp duty announced by the Karnataka Chief Minister, the expectation is that residential sales in the price band will witness a surge in Karnataka, and this will also ensure that demand outlook for residential real estate through 2021 remains resilient,” he concluded.