India real estate developers have high hopes from the property market as the first quarter of the new financial year draws near and issues in circulation like GST settle down.
According to Getamber Anand, National chairman of the Confederation of Real Estate Developers’ Association of India (CREDAI), there are reasons to believe that the real estate sector will exhibit stability in the closing quarter of this financial year and will make headway in the first three months of the next year.
He said that it has been corroborated that the seven metros are running short of 150 million residential units and there is also a deficit of 40 million units in tier 2 to tier 4 towns. He shared that the Pradhan Mantri Awaz Yojana with its offering of credit-based subsidy scheme will lend a hand in elevating the affordable residential sector. Homebuyers should draw maximum benefits from this.
During the past couple of years, real estate has seen a price fall as a result of the rates being amended by 15 to 20%.
Attending the Kerala State Conference of CREDAI (Apex body of Private Real Estate Developers Associations), Anand announced that although demonetization, RERA and GST have had their share of impact on the real estate segment, it is anticipated that GST rates of homes will soon be rationalized.
Speaking on the GST rates on materials such as cement, concrete and others that continue to be taxed under the slab of 28% GST, he said that on one hand there is a loud pitch for affordable housing and on the other, the prices of building materials are soaring. He stated that it is imperative that these prices be reduced to promote growth of the real estate industry.
In his appeal to the Government of Kerala, he asked them to reduce the stamp duty in the state from the existent 10 % to around 4 to 5 % and this should also be implemented in other parts of the country.