Housing.com: Indian Realty’s Expectations from Q1 2019 - MAIA Estates

Legal Disclaimer

The material contained in this website is provided for informational purposes only, and should not be construed as a prospectus or notice which is binding. By using or accessing this website, you hereby agree to be bound by the terms of this Disclaimer. MAIA Estates LLP (“MAIA LLP”) reserves all the right to add, alter or delete any material from the website at any time without notifying you. Nothing contained on this website constitutes a contract, booking, selling or an offer for sale or invitation to purchase a unit in any project of MAIA LLP and shall not be considered a legal offering under any law for the time being in force, under any circumstances. The contents herein comprises of general information and may not reflect current legal developments, verdicts or settlements. The contents on this website may not be definitive and can be modified in terms of the stipulations / recommendations under the Real Estate (Regulation and Development) Act 2016, and rules made thereunder (“RERA”). MAIA LLP is currently in the process of complying with RERA.

All plans, images, videos, soft furnishing/furniture, gadgets, equipment, product, building colours and technology displayed are representational only and do not form part of any agreement and are not legally binding on us. Photographs of interiors, views and the location are indicative only and may have been digitally enhanced or altered and do not represent actual views or surrounding views. The Developer reserves the right to change, delete or add any specification, amenity or plan mentioned herein based on site conditions and construction necessities without prior permission or notice. MAIA LLP makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, services, or related graphics contained on this website for any purpose.

Any action you take upon the information on this website is strictly at your own risk and neither MAIA LLP or any of its affiliates will be liable for any losses and damages occurred to you in any manner in connection with the use of this website or contents herein. In no event shall MAIA LLP be liable for any loss or damage including without limitation, indirect or consequential loss or damage arising from the use of this website. You are thus required to verify all the details of the project, with the sales team of MAIA LLP prior to buying any unit(s) in the project. You agree with this disclaimer without any qualification or limitation.

UNDERSTOOD

Housing.com: Indian realty’s expectations from Q1 2019

,
get_the_title()

Rationalisation of the GST regime and easier finance for the real estate sector, are some of the measures that the fraternity is hoping for in the new year, to make it easier for home buyers to get their dream homes

The Indian real estate sector has witnessed a sea change, over the last couple of years. However, in spite of the advancements in construction, the use of high-end technology, the advent of smart homes and flexible apartment configurations being made available according to the evolving market, the industry is going through a lull. Real estate experts maintain that with all the major policies having been implemented in the last five years, 2019 could be the year that the property market bounces back. Nevertheless, they add that several niggling issues also need to be addressed, so that all the stakeholders in the sector can reap the benefits of a bright first quarter in 2019.

GST rate on real estate

Revising the rates of the Goods and Services Tax (GST) on various segments connected to the real estate industry, could help both, consumers and developers.

The developers’ community is hopeful that with the GST Council meetings underway, if the GST on cement could be lowered from 28 per cent to 18 per cent or lower, it will be a game-changer. GST is also a big hindrance for buyers. “The only thing hampering the demand for housing in the market, is the GST of 12.5 per cent. This has to be substantially reduced by the government, as it will help in boosting the demand for housing and the overall GDP of the country,” says Dhaval Shah, joint managing director, Parinee Group.

See also: GST on completed properties without completion certificate, to hit real estate sector

Merging of GST with stamp duty and registration

Property buyers are required to pay 12.5 per cent GST on under-construction projects, five per cent stamp duty (which has now increased to six per cent in Mumbai) and registration charges.

“So, when we talk about real estate being unaffordable, the truth is that 20 per cent of the cost is spent in tax components, stamp duty and registration, which is a deterrent. We are hoping that the stamp duty and registration are merged into the GST. This will make properties cheaper for the customer and benefit the buyers,” explains Aditya Kedia, managing director, Transcon Developers.

Improvement in finance and an end to the NBFC crisis

The prevailing financial turmoil, vis-à-vis NBFCs (non-banking financial companies) and HFCs (housing finance companies) is likely play out in the year 2019. Mayank Ruia, founder and CEO of Maia Estates LLP, points out that its resulting effect on liquidity available to the developers, shall determine the pace of new projects and launches. “The financial chaos may also prompt developers to liquidate existing stock aggressively, to avoid duress. However, as long as home loans are easily available and at affordable rates, good opportunities will be available for consumers,” Ruia concludes.

Macro-economic factors that could affect the property market in 2019

  • The general elections in 2019, could be a big turning point in how the real estate market will behave and progress.
  • The real estate industry is expected to see a continuing process of clean-up in 2019, with evolving regulations on funding and the further evolution and implementation of the Real Estate (Regulation and Development) Act (RERA).

Read more on https://housing.com
January 2019

Skills

Posted on

January 17, 2019