Triple tsunami — demonetisation, RERA and GST – has severally impacted real estate sector and has resulted in residential launches falling to the lowest in past five years. Similarly, new residential sales, fell to five years low to just 100,000 in fist half of 2017, down around 40 per cent during the same period.
Real estate, which contributes more than 52 million jobs in country and contributes more than 8% of country’s GDP is now expecting big bang reform,for its revival,from coming budget including:
1. Reduction of GST on under-construction property from 12% to 6%-8%. and nominal GST on affordable housing projects
2. 100% reduction on pre-construction period interest on home loans and removal of annual limit of Rs. 200,000.
3. Industry Status’ to real estate to bring down cost of funding
4. Long term capital gains holding period for REIT units to be brought down from 3 years to 1 year (at par with equity investments)