Though on a high in the first quarter of the fiscal 2022-23, the real estate industry expects a dip in transactions in the coming months for a variety of reasons - home loans have become costly with the Reserve Bank of India hiking repo rate by 50 basis points twice since May 2022, July being Aashada Masa, considered inauspicious for Hindus, and the guidance value rebate of 10% in the State ending on July 24.
“We have been asking for reduction of guidance value at least for one year, since a rebate for three months and ad-hoc extensions will not create any new response from the market. Customers need longer time to process registration and three months does not give that comfort time frame,” said Suresh Hari, president, CREDAI-Bengaluru.
Industry insiders also pointed out that the performance of the first quarter of 2022-23 showed that a reduction will only increase the revenue of the State exchequer and not cause losses. Maharashtra, for instance, slashed guidance value permanently during the pandemic, offering a boost to the market, insiders said.
Mr. Hari said home loans were becoming costlier and unless there is an additional incentive provided by the government, it will slash demand.
B.R. Mamatha Gowda, Inspector General of Registration and Commissioner of Stamps (IGR&CS), Karnataka, said the department had forwarded the memorandum submitted by the industry body CREDAI on extension of guidance value rebate to the state government, which will take a call soon.
