Real Estate developers today are extensively focused on meeting the specific needs of younger buyers as the average age of the city’s home buyers decreases. One of those requirements is a price that is just right. Additional value can be provided to homebuyers by reducing the amount of taxes paid. The GST reduction/exemption for properties under construction would give a huge boost not only to the real estate sector but also to the homebuyer. This allows larger units to be provided at the same price point, thereby adding value.
In metropolitan areas, various tax benefits are available to developers and homebuyers when investing in affordable housing – units priced at less than 45 lac and up to 60 square meters. A slight revision to provide such benefits for units up to 60 square meters and up to Rs. 1 crore will immensely benefit the homebuyer and developer, and enable a steady supply of affordable housing units in metropolitan areas. Long awaited industry status for the real estate industry will directly make credit available to developers on better terms. Since commodity prices have skyrocketed in the recent past any GST reduction of such prices would directly benefit the home buyer as developers currently have no choice but to increase prices due to scarcity and rising commodity prices.