Recently, the Confederation of Real Estate Developers’ Associations of India (CREDAI), Indore chapter said that the sale of property in April is likely to stay approximately 10 percent higher in comparison to the same period of the last year.
The CREDAI chapter said that after the deduction in tax, the sales of under construction residential property and affordable housing has increased by manifolds.
Atul Jhawar, secretary, CREDAI (Indore chapter) said that the demand is increasing gradually as high tax slabs were a major roadblock earlier as the clients had to consider the same before making an investment. However, there is a good demand for the affordable segment and independent houses now.
He also said that the reduction in tax component will lift the property sale in April as the clients who were playing safe with wait and watch idea are also stepping into the property market. The property dealers said that the stalled projects will also get funding for as the increase in sale of under construction housing units will allow collection of funds.
According to the tax expert, prior to April, there was demand for plots but now with a huge tax relaxation, the under-construction properties are being the first choice of the homebuyers.
The real estate experts said that there is a huge demand for affordable housing at Dewas Naka, Talawali, Ujjain road, Mhow and Rau.
For affordable housing, the GST rates are reduced from 8 percent [with full input tax credit] to 1 percent [without input tax credit]. The rate has been reduced from 12 percent with full input tax credit to 5 percent without input tax credit for other segments.