The recently induced steep hike in stamp duty rates may adversely impact all stakeholders including the general public and the real estate sector as a whole and therefore the state government has to consider reviewing the hike immediately, appealed the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) here on Wednesday.
The new hike would impact property market dynamics, investment decisions, and adversely touch all stakeholders and therefore it could bring down market activity and hinder economic growth in the sector, said FKCCI resident, Ramesh Chandra Lahoti.
“We think it is a big concern and appeal to the government to urgently reconsider its decision and revert to the previous stamp duty rates. This proactive step would alleviate the undue financial burden on the public, foster a conducive environment for property transactions, and safeguard the interests of all stakeholders in the real estate sector,” he said.
The steep hike in stamp duty rates threatens to precipitate a slowdown in the real estate market as prospective buyers are likely to postpone purchasing decisions or seek out more affordable properties to mitigate the burden of increased payout towards stamp duty costs, as per statement from FKCCI.
The trade body said, the heightened stamp duty rates have been posing significant affordability challenges for individuals and families, particularly first-time buyers or those with limited financial resources. “The dream of home ownership could become increasingly elusive for many, exacerbating existing inequalities in access to housing,’‘ Lahoti added.
Also, a higher stamp duty rate would diminish the attractiveness of real estate investments, potentially dampening investor sentiment and curtailing investment activity, he cautioned.