The Impact on Real Estate of Kerala Budget 2020
The Kerala budget has come as a severe blow to the real estate sector in Kerala as the Government of Kerala has jacked up fair value of land by 10 percent while it will be 30 percent for notified areas near large scale projects. This has been done targeting more revenue from stamp duty. Real estate Industry experts observe that the decision to hike fair value is a step backward further pulling down the industry. As such the real estate sector in Kerala has been struggling for the past two years due to the employment crisis in the Middle East, Demonetisation & the recent floods.
The Kerala Budget 2020 was presented by the Finance Minister of Kerala Dr Thomas Isaac in the Legislative Assembly on the 31st of January 2019.
Luxurykeralaflats.com invites you to have a look at how it will impact land transactions and residential construction.
Increase in Fair value of Land
The Kerala Budget 2019-20 proposes a 10% increment in the fair value of land & this will automatically lead to a 10% hike in the stamp duty and registration fees of land transactions. For registering a property with a fair value of Rs 5,00,000/- you will have to give an additional Rs 5000/- on stamp duty and registration fees. Ordinary people who are looking to buy five to 10 cents of land for constructing houses will feel the brunt of the hike in fair value of land.
Hike in Luxury tax
When you consider residential buildings like flats in Kerala, there is a proposed increase in luxury tax for buildings whose plinth area is greater than 3000 sqft. To date, all residential constructions greater than 3000 sqft constructed after 1st April 1999 are levied a luxury tax of flat Rs 4000/-. All modifications and additions made to buildings constructed before 1st April 1999 and whose total plinth area exceeds 3000 sqft. Apart from that, the Government proposes to introduce multiple slabs of taxation. Large residential constructions can be taxed more accordingly.
The different slabs are as follows.
Based on the plinth area specified in the building completion certificate it is a one-time tax levied. The tax is also applicable in the case of flats for sale in Kerala where two apartments are merged.
Building construction to cost more
The building construction costs in Kerala are going to hit an all-time high as the price of Cement, Ceramic tiles, Plywood, Granite, Marble and Paint will shoot up. This will affect the costs of flats for sale in Kerala.
Overall, the impact of real estate by the Kerala Budget 2020 is going to be revolutionary. Book your flats in Kerala or check out flats for sale in Kerala with the prime real estate portal in Kerala - luxurykeralaflats.com
.png)
This comment has been removed by the author.
ReplyDelete