The hike in guidance value has sent the realty sector into a tizzy; buyers are shying away from investing, though the current price is down by 25 per cent
The hike in guidance value has sent the realty sector into a tizzy; buyers are shying away from investing, though the current price is down by 25 per centWhile an increasing number of realtors are coming up with projects to address the demand for real estate across the city, buyers are now finding it difficult to invest in properties. With the government hiking the guidance value of properties by over 200 per cent, the real estate sector is set to undergo turbulence like never experienced before. Already, the current price of real estate has come down by 25 per cent.
Be it industrial or commercial localities, with the guidance value going up, buyers are already shying away from investing in properties. The department of stamps and duties, in a shocking move, announced this massive change in the guidance value sending ripples across the real estate sector.
"As a result, property sales have hit rock bottom in many areas. Now buyers are not keen on purchasing properties, though current prices in many areas have come down by almost 25 per cent. The future course of our business currently depends on the government and on whether they would consider our pleas," said Imran, a real estate agent.
Meanwhile, the Commissioner of Stamps and registration has called for objections related to the set guidance value."The guidance value has been hiked by 10 to 200 per cent and we have called for objections regarding the same. The parties will have 15 days to file their objections, which will then be debated," said B Shivappa, Commissioner, Stamps and Registration.
The common notion amongst builders across the state is that the guidance value, which is least expected to rise, has left them hanging in between."Post filing of objections, we are hopeful that the government will regulate the fixed price. However, they are following procedure and that will take time. They will first have to file a notification, then issue a gazette and place an advertisement inviting objections," explained B V G Shastri, GM, SPL Propcare.
In addition, a realtor from a popular real estate marketing site explained that this change is making it a difficult buy for buyers. With the interest and guidance value both increasing, the turbulence in the industry is sure to leave an impact.
