Real estate sector fears raising guidance value will affect growth

BENGALURU: The proposed hike by the Stamps and Registration Department in guidance values, which are proposed to be released in the last week of December, have met with resistance from the realty sector.
Experts say that new buyers might be put off by the rise in values, and could put off buying properties.

"Just about the time when stability in policy environment and market sentiments have begun to show results, the proposed move to increase guideline values will set the industry back, and consumers will suffer the consequences.

Any disruption here will lead to reduced business, and in turn, be counterproductive to the goverment's initiative for greater property registration tax revenues," said Ashish Puravankara, president, CREDAI Bengaluru, an industry body.