The government’s decision to reduce the guidance value on all properties by 10% until the end of March is yet to attract the interest of the wider consumer base, according to realtors and sub-registrars.
The government has slashed guidance value by 10% on all properties purchased between January 1 and March 31, 2022, in a bid to shore up revenues and to rejuvenate the market amid the Covid slump. This will apply to dry and irrigated lands, sites, flats and other buildings.
At the outset, the decision has successfully converted fence sitters into buyers, according to some realtors.
Sajid Mustafa of Silverline Realty said the government’s decision benefits both the buyers and the sellers.
“While the buyer can register the property at a lower registration rate, the seller will get benefit on capital gains because of lowered guidance value,” he explained.
Ever since the government announcement, many people who had almost finalised on properties have been able to make a quicker decision to avail this benefit, Mustafa said.
However, this covers a marginal consumer base as it is yet to attract the interest of new buyers, CREDAI Bengaluru chairperson Suresh Hari said.
The government’s announcement has failed to encourage more traction for various reasons. The weekend lockdown has been a dampener, Hari said.
That apart, with a three-month window for customers to avail this discount, only those who were already on the verge of making a decision will consider buying property, whereas it does not give adequate time for new buyers.
The government must extend this at least for a year, for it to yield results, he added.
Several sub-registrars that DH spoke to had a similar response that the property registrations were as usual and that there was no extra interest among consumers owing to this discount.
In a recent announcement, the government has stated that a total of 15,34,968 documents were registered in the financial year 2021-22, generating over Rs 10,000 crore revenue to the exchequer.