The realty market is cheering the GST rate cut announced recently by the GST Council of India. The rate on under-construction properties has been reduced from 12% to 5% and for affordable housing, from 8% to 1% and is expected to impact sales amongst the fence sitters waiting to decide on investing in properties. Many potential home buyers have already reached out to the developers, according to CREDAI.
The sale of residential properties in Bengaluru, according to CREDAI, has witnessed a significant rise in the past six months. According to a report, during the second half of 2018, residential property sale in the city surged by 35% compared to 2017. The Department of Stamps and Registration said the real estate market in Bengaluru recorded nearly 20% rise in revenue from property registrations in the last seven months of 2018 in comparison to 2017. This indicates that the property buyers are not in a “wait mode” as the city has been seeing projects take off.
Commenting on the expo being held this weekend, Ashish Puravankara, President, CREDAI Bengaluru, said,“Our expo not only caters to people looking at buying a house, but also presents a host of options to millennials and investors. The GST rate cut will provide the much needed relief to this sector. People who are currently not able to decide due to the price and tax factors will be inclined to make new decisions as the new GST rates are conducive and more affordable.”
Prospective home buyers can choose from mid-range to uber luxury projects across multiple locations, showcased at the expo. “It is an exhibition with the best of available residential projects, where customers will be spoiled for choice,” he added.
Adarsh Narahari, Secretary, CREDAI Bengaluru, said,“Today, home buyers have different demands in property. “While the developers try to fulfil them, it has resulted in a decline of unsold inventory by 15 per cent in Bengaluru which indicates that there will be more project launches in the coming months.”
Transparency by developers, GST, tax benefits, and affordable housing segment have prompted many to invest in real estate, according to him. “With more tax benefits available for real estate purchase, that was announced in the interim budget in February 2019, many have already started approaching developers for second homes,” says Mr. Narahari.
Regarding the importance of CREDAI expo, A. Bimal Hegde, Chairman, CREDAI Expo Committee, said with Bengaluru’s increasing growth and infrastructure development with Namma Metro connections stretching every year, this is the time to look for investment as the prices are stagnant, and buyers have options to choose from.
CREDAI Realty Expo, March 2-3, Hotel Lalit Ashok & on March 9-10 at RadissionBlu (Park Plaza), Marathahalli