The members of CREDAI (RNE) Raj Nagar Extension, believe that
property prices will go up once the new tax regime kicks in
Come
July 1, under-construction projects will attract a goods and services tax (GST)
rate of 12%. Amid all the hullabaloo over the unified tax regime in the
country, speculation is rife on would it lead to a hike in property prices?
The
members of CREDAI (RNE) Raj Nagar Extension, believe that property prices will
go up once the new tax regime kicks in. They feel RERA and GST will push price
trends with a 10-20% spike in property prices.
“Taxes
are being rationalised which will lead to increased transparency. There will be
more clarity post-GST in terms of taxes. Under GST, the under-construction
projects are going to attract 12% tax, where previously it was about 4.5%. This
will push the market and we can expect an increase in prices. Steel will also
attract 18% GST, which will further put stress on prices,” says Manu Garg,
Director, Carol Infrastructure Pvt Ltd, who was speaking at a press conference
held by CREDAI, RNE chapter.
“Cement
has seen both highs and lows in the past and it directly impacts the
construction cost. Any increase in cement prices will directly influence the
construction cost of a project. The government is also working on the
correction of minimum wages. From here, the market will only move ahead so the
best time to buy a house is now. Home loan rates are low and the market gives
end-users and investors the right climate to buy,” adds Garg.
General
Secretary of CREDAI RNE, Gaurav Gupta says that the best time to buy property
is now as prices are attractive and home loan rates are cheapest at this point
in time. “The market offers attractive prices for home buyers. Home loan rates
are the cheapest and affordable homes are getting subsidies from the
government,” explains Gupta.
The
GST rate for steel has been finalised at 18% which is expected to be beneficial
in the long run for other sectors as well. Cement prices are expected to go up
marginally, as it has been put in the 28% tax slab from the earlier 23-24%.
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