Real Estate industry to be hit by guidance value

Bangalore, Apr 25 (UNI) The northward journey of the guidance value of property in Bangalore will severely hit the real estate industry already burdened with taxes, Karnataka Ownership Apartment Promoters Association (KOAPA) President K Balakrishna Hegde said today.

Announcing the biannual realty show to be held here from April 28, Mr Hegde told newsmen here that ''the industry now pays a number of taxes including service tax, licence fee, VAT and others that amounts to around 36 per cent of the cost of a flat''.

He said the reality show that aimed to help genuine buyers avoid the unscrupulous builders and fly-by-night operators was being held at a time when the industry itself was under intense pressure from new developments like the increase in guidance value.

The two-day event, sponsored by LIC Housing Finance Ltd. and cosponsored by ICICI Home Loans was billed as one of the biggest real estate events that happens bi-annually in the city., Mr Hegde said the real estate sector had grown at 30 per cent during the last two years and continued to grow at the same pace in the current year. Through the Reality expo, KOAPA aimed at providing a credible and reliable forum for the people to witness homes of different kinds, prices and at various locations across the geographies of the city and choose their dream home he added.

UNI