By Mr. Ramani Sastri – Chairman & MD, Sterling Developers
The state government will see enhanced revenue and treasury after effecting a hike in the guidance value for immovable properties in the Karnataka Budget announced today. The hike will ensure that more funds can be allocated for better infrastructure. The higher guidance value will also lead to property appreciation, which could impact affordability in the short to medium term. In the long run, however, buyer sentiment may not be impacted as demand for homes would continue to be steady. The idea of establishing a GIS-based decision support system to make quick decisions on approvals and NOCs is welcome as the real estate sector has long been waiting for this to quicken project timelines. Finally, the target of the Stamps and Registration department to mobilize Rs 25,000 crore indicates that the government is anticipating a robust real estate performance this year. Overall, the real estate thrust by the government has been positive and we will see great momentum in the sector.