Karnataka’s Real Estate Sector to See a Boom by 2020
The real estate sector is considered to have one of the largest contributions to the job industry in India. This sector includes retail, housing, hospitality as well as commercial as the sub-sectors.
The forecast says that Karnataka will be one of the biggest hubs of the real estate sector in the country. This will be a definite win-win situation for the developers of this state since the demands for properties have witnessed a marginal increase from homebuyers and investors.
The state is also set to see another major boom in 2020. Reports say that although this industry has seen a lot of ups and downs, it has still emerged out to be one of the leading sectors in India, especially in Karnataka.
Confederation of Real Estate Developers Association of India (CREDAI) issued a report stating that the main reason for this state to see this boom in the real estate sector is the initiative taken by the Government which includes the reduction of GST from 8% to 1%, and from 12% to 5% in case of under-construction properties.
Though the GST on construction materials is yet to be decided, the GST on cement and steel is 28% which on the other hand will increase the construction cost. Another major reason for the growth in demand of properties is the reduction of stamp duty which is 6.65% in Karnataka.
Areas like, Kanakapura Road, Sarjapur Road, Whitefield, Hoskote, and Mysore Road are all set to witness high demands for affordable properties in Bangalore. All projects under the category of 45 lakhs are getting positive responses when it comes to buying or investing in a property.
ITeS, IT, and startups are sectors that are responsible to drive the real estate growth not only in Karnataka but throughout India. This has also been beneficial for the commercial sector.
Reports further say that more than 46,000 crores have been invested by many foreign investors in the stock market in the last three months. The future looks bright as Bangalore and many other parts of Karnataka may witness high values of investment especially from NRIs.
The new concepts that are creating a buzz now are co-living, coworking spaces, and senior living which also adds to the growth of the real estate industry.
The Garden City already has buyers who are more interested in rental houses with all services provided. This is yet another growth for this industry in the coming years.
With all these benefits that the real estate industry is already witnessing, CREDAI has also requested the government to reduce the plan sanctioning fee and set a particular time period to approve the same in order to increase the speed of the projects.
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