Buyers, realtors in Indore cheer as GST rate slashed
Home buyers have a reason to smile this year as tax deduction on affordable and under-construction housing property has given a much awaited relief to the common man.
The rate cut is seen as a move that is set to boost sale of houses in city from April as new levies are applicable from next financial year starting April 1.
The new rate of levy is set at 5 per cent on under-construction housing property from the existing 12 per cent and 1 per cent on affordable housing from 8 per cent.
Confederation of Real Estate Developers of India (Credai) Indore Chapter president Naveen Mehta said, “Real estate sector will get a boost after this rate deduction as cost at consumer end will drop. People who were on hold will resume buying. A major pick up is expected in affordable segment.”
Realtors said affordable segment is expected to see a huge jump with rate cut in city. According to Credai, of the total realty projects in past one year, about 70 per cent have come in affordable segment costing up to Rs 45 lakh sensing good demand.