New Delhi, October 10, 2018: 1) Viswa Prathap Desu, Sr. Vice President Sales and Marketing, Brigade Enterprises Ltd
The proposed increase in guideline value of upto 20% will impact the end price for customers. The markets have been slowly looking up and this comes as a dampener. During the previous guideline value increases, the value has come up to the market value and there’s hardly any difference between the two values.
While this will help the government increase their revenues, this proposal to increase the GV may affect the sentiment. We hope the government reconsiders this decision to increase the Guideline values.
2)Mr. Darshan Govindaraju, Director, Vaishnavi Group
The real estate market in Bangalore has been witnessing encouraging sales traction over the past 2 quarters with end users in particular evincing keen interest in purchasing a home for themselves. We are of the view that the recent proposal to increase guideline values in Bangalore is ill-timed and is quite likely to have a direct impact on a market which is otherwise showing positive growth. Increased guideline values means higher stamp duty costs for the buyer and may well turn out to be a dampener for the Bangalore residential real estate in general.
3) Mr. Preenand Premachandran, CEO, Hebron Properties
Guidance value brings more sanity in the property values. The revision primarily captures the market transactions average and trends to reflect true value. Historically just before the revision of guidance values, buyers rush for registrations to get the benefit and soon after there is lull for few weeks and then the market reconciles to the new values and transaction picks-up. The fact that the government has raised the guidance value shows that the real estate market is picking up now.
North Bangalore is favourite among investors and South Bangalore is favourite among users for self-use. Whitefield has been the favourite of IT industry employees and reflects among the buyers profile as safest zone of Bangalore when it comes to rental yield and appreciation. Old Madras Road & Budigere zone can be multiplier in terms of application in the next 3-5 years for airport connectivity with Whitefield.
4) Mr. Suresh Hari, Treasurer CREDAI Karnataka
Guidance rate increase is a very regressive step. Stamp duty should be minimum and in line with the value of service rendered. Using guidance value to fix registration charges puts challenge to buyers and with the increased interest cost, the cost per unit to a buyer will increase.
Corporate Comm India(CCI Newswire)