Due to the major slump in real estate sector, the stamps and registration department has decided that there will be no hike in guidance value for properties in this financial year. There is a possibility that this may be extended till November next year, when the guidance value is expected to be revised by the government. GK Shelters, a widely known and trusted name in realty industry states that it is great relief for the people planning to buy homes in the areas around Bengaluru. From 1st November, the new guidance value was supposed to be implemented. However, the revision of market rates in realty estate sector was opposed by the finance department which highlighted the fact that it would have an adverse affect on the revenue generated through stamps and registrations. The department has decided to keep on hold the decision of revising guidance value on properties at least for a year. A hike in the real estate sector would have a major affect on their business, especially in a city like Bengaluru where the demand for land and property is high. The Inspector general of registration and commissioner of stamps NV Prasad stated that taking into account the objections, we would make the final decision later.
GK Shelters pointed out that the hike in guidance value in 2014 resulted in a substantial decline in the number of properties registered during that year. There was a difference of around 1 lakh in 2014-15 as compared to the previous year. The company states that no increase in the guidance value will benefit the realty sector as well as the home buyers.