Real estate sector to benefit in long run

Real estate sector to benefit in long run

The real estate sector has seen three major developments in the last one year – demonetisation, introduction of Real Estate Regulatory Authority (RERA) and now the Goods and Service Tax (GST) regime – that is expected to boost transparency significantly. While big players within the sector are looking at some relief, they agree that in long run it is going to be a win-win situation for all and home buyers would be benefited like never before.

“The introduction of GST is a major step towards encouraging ease of doing business for all the segments of the industries as it unifies different taxes into a single tax structure. While for all other sectors, it also comprises their total indirect tax liability, the same doesn’t hold true for real-estate. Developers will still have to bear other expenses like stamp duty which ranges from 5-8% of the value of the immovable property. An additional imposition of GST of 12% on land values is another drawback which will affect the growth of the industry, especially in cases where land value is relatively high,” said Jaxay Shah, President of CREDAI, the apex body of private real estate developers associations.

According to him, for the sustainable growth of the industry which is the second largest contributor to the GDP, the GST Council needs to consider accommodating the abatement of land value in the new regime to ensure that prices don’t rise.

Sunil Mishra, Chief Strategy Officer, PropTiger.com, Housing.com and Makaan.com, said: “GST is the third tool unleashed by the government after Demonetisation and RERA to clean up and simplify buying of Real Estate in India. Although this Trishul of D-R-G has affected the real estate sales for 1 -2 months, we are confident that each initiative will have the final impact of drawing the sector out of the current troubles. Although GST will bring the required transparency in the sector, the change will emerge only after the first few months. After the successful implementation, we foresee investors re-entering the sector.”

Surendra Hiranandani, Chairman & MD, House of Hiranandani, said there is no doubt that it will be a game-changer for the Indian industry, bringing in a more comprehensive and uniform tax structure that will ensure greater transparency in the economy. “However, there are certain areas in which we would like the government to intervene at the earliest and provide clarity on the same,” he said.

Demonetization, RERA and GST are all landmark developments in the country. They are all being implemented within a short span of each other which is bound to cause short term upheaval till the time the economy gets accustomed to it. However, in the long term all these are certain to make the industry more transparent which will boost investors confidence in India, pointed out Hiranandani.

“The impact on the overall economy will filter through to the real estate, construction, and warehousing sector. In construction, inputs such as cement and ceramic, tiles, building blocks and bricks, prefab structural components for buildings among others have been placed in the 28 percent category, whereas other components such as iron and steel have been placed in the 18 percent bracket. Work contracts addressing construction intended for sale were classified as a service and were placed in the 12 percent category,” pointed out Anshuman Magazine, Chairman India & South East Asia CBRE.

“GST will impact pricing for under construction properties but not the ready to move in products. Technically, it will have little or no impact on luxury real estate where buyers are more interested in acquiring a global product and marginal cost increments are largely ignored. However, as a luxury residential major, we work with a huge spectrum of global partners across technology, materials and construction,” said Atul Chordia, Chairman of Panchshil Realty.

Source : http://www.deccanherald.com/content/620287/real-estate-sector-benefit-long.html

Share Button

Post Author: Deccan Herald

23 thoughts on “Real estate sector to benefit in long run

  • neha goyal

    (July 18, 2017 - 11:31 am)

    It’s quite knowledgable blog. Thank you for sharing it.
    http://www.shreeramgroup.com/south-court.html

  • neha goyal

    (July 19, 2017 - 12:48 pm)

    “Real Estate Sector to benefit in long run” is a great blog.
    http://www.shreeramgroup.com/south-court.html

  • vedshri

    (August 8, 2017 - 5:22 pm)

    Since last year, the country has seen various economic transformations. With real estate at the center of any major development of a country – demonetization, GST and RERA is expected to be instrumental in future growth of India. This article has poured out my thoughts about the subject perfectly. Recently, looking for an affordable property to buy in Howrah, I realized the future of an upcoming scenario in realty market of India.
    Like many other well-known developers, who share government’s vision of ‘Housing for All’, a project like Joyville by Shapoorji Pallonji, make the dream of affordable Housing in Howrah, seem possible for all. People may not realize its importance immediately, but it will surely bring out the best results for our economy, in the long run.

  • Ritesh

    (August 21, 2017 - 1:53 pm)

    Totaly agree with this blog. Very nice and informative blog.

  • Nxone

    (August 22, 2017 - 11:13 am)

    DAH Greentech Group is coming up with a project of 25 acres in Noida Extension by the name of NX–ONE, Greater Noida West. The project is just 500 meters away from proposed metro station! At NX One, we offers commercial spaces including retail space, office space, clubs, food courts and much more. The project beholds a international planning and construction too. With all sort of modern facilities, this project marks its upfront in putting forward redefined future with 3G lifestyle. NX One is sited plot no 17 of sector Tech Zone 4 of Gr. Noida West, just 500 meters from Gaur City. The project is located in heart of Noida Extension and principally considered as one of the best and lucrative project of NCR. The project has housing units, hyper market, commercial complex, and multiplex, office complex for IT & corporate. The project is expected to be launched officially very soon. DAH Group constructs with conscience. DAH Greentech Group signifies the essence of luxury, integrated with highest quality and understated opulence. For NX Corporate suites, we proudly announce 7% assured lease guarantee, we will soon announce the name of Hospitality Gaint. For know about this project please click here: http://www.nxonenoidaextension.org.in/

  • sneha

    (August 22, 2017 - 3:05 pm)

    The impact on the overall economy will filter through to the real estate, construction, and warehousing sector.
    and some of the brand names contribute to the factor one of them is Shree ram group http://bit.ly/1AQ3NW6

  • Anil MAhajan

    (August 25, 2017 - 3:56 pm)

    It’s a quite knowledgable article to read. Thank you for sharing such a nice article.
    http://www.spaze.in/

  • Shreya

    (September 1, 2017 - 4:30 pm)

    RERA has boosted real estate sector from last few months. It is giving so many opportunities to home buyers to buy home. http://www.anukampagroup.com/

  • Nishtha jain

    (September 4, 2017 - 11:37 am)

    Hi, I like Your Blog this very Informative Blog if you have Interested in Property To buy property in Jaipur check Leading Builders and Developers in Jaipur. Shree Ram Group

  • bookmyhouse178

    (September 8, 2017 - 4:47 pm)

    Interesting Blog.Book my house also upcoming with new Projects in Gurgaon along with luxurious apartment and amazing project amenities.For More Information please Vist
    Book my house

  • neeraj

    (September 10, 2017 - 12:02 am)

    Awesome post boss.
    U have shared such a informative article,its really helpful & useful for us and yeah im gonna share ur valuable information with my family & friends, thanks for sharing great job.

    See u TC 😊

  • Suman

    (September 25, 2017 - 6:53 pm)

    Good Article

  • Green Field City

    (September 27, 2017 - 6:04 pm)

    Nice Great post you have shared with us.
    thanks for the sharing.
    find the best real estate developers at http://www.greenfieldcity.com/

  • Salarpuria Sattva Park Cubix

    (October 3, 2017 - 4:14 pm)

    Very nice article about investing in real estate. Investing in Nitesh Estates properties in Bangalore is also worthy. They have budgeted and luxury apartments in Bangalore

  • Dwij Parasar

    (October 11, 2017 - 2:50 pm)

    After RERA rules & regulations, it become more transparent to buyers.

  • vishant yadav

    (October 14, 2017 - 11:20 am)

    ABOUT SUNINDER SANDHA
    Hard working and luck are the two factors in the life of any person, to reach prosperity. Sandha is the one who has worked literally very hard and of course the luck has made him achieve that he could never have dreamt about.

    for more info click on the link below:
    https://vishu106.livejourna…

    website:
    http://www.sunindersandha.in/

  • vishant yadav

    (October 14, 2017 - 4:08 pm)

    MMR GROUP- 52ND AVENUE
    Living spaces with excellent amenities in Noida by MMR group

    The environment in which an individual resides always influences the person’s thoughts and ideas.

    52nd avenue is a project having studio apartment in noida,commercial property in noida,service apartments in noida,luxury apartments in noida,buy property in noida,virtual office in noida,commercial shops in noida.

    for more info click on the link below:
    https://medium.com/@mohiteotia9/building-the-magnificent-enhancements-in-noida-by-mmr-gathering-3c829ca7abd4
    website:
    http://www.fiftysecondavenue.com

  • sanchit

    (October 16, 2017 - 2:28 pm)

    nice blog you clearly mention how its beneficial and how its long in long run. keep posting like this blog for the updation of real estate sector

  • manvi sharma

    (October 25, 2017 - 12:21 pm)

    This is totally relevant blog. A real estate enthusiast should read this blog. There are many reputated real estate companies in Jaipur, rajasthan. In which “Suvaas” is best one among them. For more details visit at http://www.suvaas.com/utsav.php

  • sonal

    (October 26, 2017 - 3:17 pm)

    this is more informative post.Sobha Dream Series

  • Piramal Revanta

    (November 2, 2017 - 10:35 am)

    Thanks for the information. For the flats with best amenities at Mumbai visit Piramal Revanta

  • srinu vuggina

    (November 5, 2017 - 2:54 pm)

    its very good article …after gst little bit confused for a common man on real estate … real estate in vizag

  • srinu vuggina

    (November 5, 2017 - 2:59 pm)

    very interesting article …but after gst little confuse on real estatereal estate in vizag

Leave a Comment

Your email address will not be published.