Bengaluru: The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rates become effective from April 1, builders' apex body Credai said on Thursday.
"GST rate cut to 5 per cent from 12 per cent on under-construction properties and to 1 per cent from 8 per cent on affordable housing projects from April 1 will spur the growth in the realty sector," Credai (Confederation of Real Estate Developers' Association of India) President Ashish Puravankara said in a statement.
The sector is also betting on benefitting from the incentives given to the sector in the interim Budget for 2019-20 and anticipated higher investment in commercial and housing projects.
"Many potential home buyers are enquiring to book flats or duplex houses in gated communities and avail the GST rate cuts," Puravankara said.
The GST Council cut the rates on February 24. It, however, did not accept the super carpet area concept as many developers have made it variable and flexible.
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Cashing in on the GST relief and budgetary sops, Credai is holding its annual realty expo here on March 2-3 and March 9-10, where 30 developers will offer the properties with new indirect tax rates.
"Seven financial institutions will be at the expo to assist buyers in applying for home loans and benefits offered by them," Puravankara said.
H.N. Vijaya Raghava Reddy The state's Stamps and Registration Department also witnessed 20 per cent increase in revenue from property registrations from May to December over the like period of 2017."Sales growth and higher revenue collection indicates property buyers are no longer in a wait mode, as developers have been offering houses at a better price," Puravankara added.Speaking to ETV BHARAT on the decision of the GST Council, H.N. Vijaya Raghava Reddy, Ex- President of Builders Association of India said, "..since there is a reduction of 7% GST, it would be definitely beneficial to home buyers".(Inputs from IANS)
