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Karnataka Sand Policy 2021: Effects On Karnataka Real Estate Investment

Karnataka Sand Mining Policy 2021

Karnataka real estate sector has given hopes to many potential real estate investors with the Karnataka sand policy 2021.

Real estate investment is considered as one of the most reliable future investments. The real estate sector in India is high in demand by both locals and NRIs. India is a developing country and with its increasing quality of life and employment opportunities, it is predicted to be a fully developed country in the near future.

The real estate sector in India is the second largest employer in the country. Karnataka real estate sector comes close to providing ample employment opportunities in the state.

For the past many years, the biggest issue that builders faced in constructing properties in Karnataka was the supply of raw materials like sand. Karnataka sand policy 2021 was formed to help make the construction of properties as easy as possible by enabling easy access to sand. This also eradicates the unsure and endless wait of general public for the supply of sand and having to hold the construction for the same.

In February 2021, Karnataka government reportedly identified 183 sand blocks for sand mining – for smooth sand supply to those who need the raw material to construct houses. Karnataka’s Mines and Geology Minister Murugesh Nirani mentioned that the newly proposed Karnataka sand policy 2021 was mainly address the demand-supply gap in sand supply. The ration of demand-supply of sand used to be approximately 10 lakh tonnes-1.1 lakh tonnes.


Effects of Karnataka sand policy 2021 on Karnataka real estate investment

  1. People can confidently invest in Karnataka real estate – first with RERA and now with new sand policy of 2021. Any fear of not being able to start the construction is warded off.
  2. Construction of houses can be done without worrying about putting it on hold due to lack of sand supply – before the new sand policy of 2021, this was a major issue regarding the real estate sector.
  3. Sand extracted from small streams, pits and ponds is fixed at a sum of INR 300 per tonne – having the knowledge of this will avoid consumers from paying more than the market price. Real estate investors can avoid fraud while buying sand.
  4. Demand for sand is higher in summer as rainy season does not pose as a good season for construction due to weather conditions. Due to the same reason, most of coastal region of Karnataka will have separate rules under the Karnataka sand policy 2021.
  5. The new sand policy enables transportation of sand in private vehicles such as tractors. However, cess is levied for transportation of sand in heavy vehicles such as lorry, tipper, etc. This applies to sand supply withing the district limits only and does not include inter-state transportation of sand.
  6. One tonne of M-sand costs approximately INR 2,000, making the new sand available from natural sand mining very affordable. Therefore, the new sand policy allows even low-budget houses (built under INR 10 lakh) possible, turning the wish of many people to own a dream house into reality. As opposed to commercial purposes, sand supply for residential purposes will no longer suffer.
  7. Given the easy availability of sand supply, Karnataka sand policy 2021 will automatically cut down illegal sand transportation activities and promote transparent sand supply throughout the state.

The real estate sector in India has had its ups and down with the implementation of RERA, hard hit of the COVID-19 pandemic, etc. With each state taking measures to stop corruption and make real estate investment fair and affordable by a majority of financial classes, Karnataka state has come up with the Karnataka sand policy 2021.

GSS Projects is a real estate consultant with 25+ years of experience in Karnataka real estate sector. Contact us for expert real estate consultancy services in Mysore.

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