Karnataka budget: Cheap home for underprivileged

On the lines of union budget, providing low-cost housing to low-income groups saw a special mention in the state budget. The government has earmarked Rs1,439 crore for the housing sector.

Chief minister DV Sadananda Gowda announced an increase in subsidy of Rs75,000 under the housing scheme, while also boosting the per unit cost for construction of houses to Rs1 lakh.
Terming the budget as a progressive one, SN Jayaram, commissioner, Karnataka Housing Board (KHB), said, “The budget has gone a long way to ensure housing is affordable to the economically weaker sections of the society, and to a large extent it provides impetus to the scheme.”

Further, the government decided to change the joint development policy of the KHB. This is being viewed as a welcome move by the fraternity. “This is a significant proposal, as it provides much-needed clarity over joint development agreements,” said KS Girish, local director, JLLS. Earlier, registration of land for joint development agreements had the possibility of running into crores of rupees; ultimately, the higher costs were passed onto the customer. By implementing a cap of Rs15 lakh or 1% of the market value as stamp duty, this is a good proposal for the sector and will help maintain the price points, he said.

While experts say that the government’s low-cost housing schemes will not support the sector much, a reduction in the stamp duty from 6% to 5% on conveyances and sales deeds, however, is being seen as a positive move, which will give a boost to the real estate industry.

The government has already distributed about 1,500 plots in four regions around Bangalore to the low-income groups under the Nanna Mane Yojana and is considering expanding this scheme to more areas this fiscal year.