Ready-to-move-in flats are preferred choice for home buyers but the demand for newly launched units has also improved with a reduction of GST rates from this April 2019, according to a survey by property consultant ANAROCK.
The implementation of new real estate law RERA and lower GST rates immensely helped revive consumer faith in new launch properties, ANAROCK said in its latest Consumer Sentiment Survey H1 2019. The consultant found out that 70 percent of respondents preferred properties priced within Rs 80 lakh.
"While ready-to-move-in homes remained the preferred choice for several homebuyers, new launches saw a decent revival. Over 18 percent of respondents now prefer new launch properties as against mere 5 percent in the previous survey," it said. From April 1, the GST rate on affordable homes has been reduced to 1 percent from earlier 8 percent, while input tax credit benefit has been done away with. The GST on under-construction flats, which are not under the affordable housing segment, has been reduced to 5 percent from 12 percent.
"Our latest survey confirms that a conducive reform-driven market environment and government sops have breathed life to Indian real estate. Long-term investors with realistic returns expectations are returning. 58 percent of our respondents bought property for end-use, and 42 percent bought for investment - up by 10 percent against the previous survey," ANAROCK Chairman Anuj Puri said.
More than attractive prices, effective RERA enforcement influenced over 50 percent of buyers in Delhi-NCR to take the real estate plunge in 2018. In Kolkata, nearly 58 percent of buyers took the plunge due to lower home loan rates.
News Source: Economic Times, Url: https://bit.ly/2GY4F24