Industry Bodies, Players Welcome Karnataka CM Announcement Of Sops For Bengaluru City In State Budget

As the Karnataka Chief Minister Siddaramaiah announced the state government's proposal to increase the guidance value on immovable properties in the state budget on Friday and also a host of sops for Bengaluru city, the real estate players of the state hailed the government’s decision. 

For Bengaluru, the CM has promised a total grant of Rs 12,000 crore to implement various schemes such as High-Density Corridor, white-topping of roads, solid waste management, repair of canals (Rajakaluves), and more. 

Dr. L Ravindran, President, Bangalore Chamber of Industry and Commerce (BCIC) said "The Hon. Chief Minister has presented a balanced budget with several announcements in welfare schemes, healthcare, education, tourism and agriculture. A facelift for Brand Bangalore, additional infra focus, implementing single window clearances for industries, developing a semiconductor ecosystem, supporting research activities in Karnataka are all commendable. Proposed development of airstrips in Kodagu, Dharmasthala and Chikmagalur, development of a film city in Mysore and a focus on developing tourism destinations, are surely steps in the right direction for further boosting tourism in the State. It is also important that Bangalore should be given due attention for its development as India’s leading MICE destination. The Government's intent to implement the 5 Guarantees announced during the elections is also a welcome move.”

M Murali, Chairman & Managing Director, Shriram Properties said that the government's proposal to increase the guidance value on immovable properties reflects their determination to enhance revenue collection for the Stamps and Registrations Department. This positive step underscores the government's dedication to fortifying the real estate sector. Although it may lead to increased costs for property buyers, it presents an opportunity to observe the impact of this adjustment on property transactions and its potential to stimulate further growth and investment in the market.

BS Nesara, Chairman, Concorde said, “Increase in guidance value announced in the State Government Budget 2023, will have a twin effect. The Government last increased the guidance value four years back but had given a reduction on guideline value during Covid. Prices have gone up in certain micro markets post Covid and I feel that an increase will rationalise the guideline value in such places. From an overall perspective, it will push up the prices for home buyers and could primarily affect the mid segment and lower mid segment home buyers who are already feeling the pressure of price rise due to inflation. We urge the Government to consider a gradual increase in guidance value in order to benefit both developers and home buyers."