Significant boost in fuelling residential sales: Ramesh Nair, JLL India
2019 started with a promising New India budget which addressed key pain points for homebuyers and developers, and lay adequate focus on affordable housing. This was followed by RBI’s decision to reduce repo rate by 25 bps further boosting the housing market that was already showing signs of recovery since 2018.
A win-win for both home buyers and Real Estate Industry: Rajeev Piramal, Peninsula Land Ltd.
The GST council’s decision is a win-win for both home buyers as well as the Real Estate Industry. The Government of India’s initiative to provide affordable housing for all has got another shot in the arm. With GST rates being slashed from 8% to just 1% (without input tax credit), affordable housing will now be – even more affordable.
By reducing the 12% GST rate to 5% for under construction homes (which do not fall under the affordable segment category), there’s reason for the middle class to rejoice as well. From a developer’s point of view, this will translate into more people buying under-construction homes, thereby injecting some much needed liquidity when developers need it most.
The only thing that could have been better is if this was applicable immediately, instead of from 1st April 2019.