realestate2022

How GST will impact real estate sector going forward While the impact of GST on various sectors and goods is now known, industry experts are still divided over how GST will impact real estate going ahead as clarity on the tax slabs for services is still awaited. While the impact of GST on various sectors and goods is now known, industry experts are still divided over how GST will impact real estate going ahead as clarity on the tax slabs for services is still awaited. They say ‘Change is the only constant’ but in order to succeed, change is not only constant but it is also inevitable. After many reforming initiations like “Housing for all” and RERA, the next thing that Real Estate along with all other sector is looking forward to is the Goods and Services Tax. GST is set to get implemented on 1st July 2017. There are various goods and services which will have different rates prescribed by GST, which may impact their cost. A homebuyer henceforth will have to pay 12% GST to purchase ...

RERA gives homebuyers better leverage in their dealings with builders With the Real Estate (Regulation and Development) Act coming into effect from Monday, there is considerable hope that it will ring in much needed transparency in the real estate sector. Ever since the economic downturn deflated the real estate sector, leaving many homebuyers in the lurch, the need for a legislation that can address the concerns of hassled homebuyers was keenly felt. The grouse among homebuyers was that the consumer courts established under the Consumer Protection Act, which offers remedies for deficiency of service, were overburdened and did not offer timely redressal, or was tailored to meet the specific needs of the housing sector. The Act provides a real estate regulatory authority in every state, under which developers must register their projects and place all details — including clearances, site plans, advertisements and customer brochures — with the regulator. This will aid buyers in making in...

5 Reasons Why Property Prices Will Swing Upwards (Dreamstime) Most of the buyers have been putting their home-buying plans on hold as they await key legislations to come into effect — while the real estate law became effective on May 1, the Goods and Services Tax law is expected to come into force in July. After the key legislations are in place, it would become much safer to invest in real estate. However, there is a price to be paid for enjoying this security—property prices across India are likely to shoot up in the near future by as much as 10 per cent, say experts. Here are five reasons owing to which property prices will swing upwards in across real estate markets in Indian cities: According to trends recorded by PropTiger.com, property prices in India’s major cities have not seen much APPRECIATION in the past three years. This technically means that property values have depreciated in the past. Despite that, home sales have not been encouraging either. Th...

How will GST Impact the Indian Real Estate Sector? The Goods and Services Tax (GST) is beyond doubt the most revolutionary tax-related reform to be seen in India in several decades, since it will eliminate the conflicting and cascading taxation structures which have confounded several industries over the past few decades. It will most certainly have a profound effect on India’s economic prospects. A single indirect tax which covers all goods and services will, in the long run, increase tax collection by making it easier for retailers and several other businesses to comply and also moderate overall taxation levels. That said, it should be remembered that the favourable effects of this new taxation regime will become evident only within 2-3 years of its implementation. Though the goods and services tax (GST) tax structure has been announced, there is still a lot of conjecture about which tax rate will be applicable to the real estate and construction industry. The tax rate is not decided...

Now, higher stamp duty for immovable properties The Maharashtra Cabinet has decided to levy stamp duty of 3 per cent at the prevailing ready reckoner rate The Cabinet decision is expected to generate Rs 300 crore in additional revenues for the state exchequer Gifting immovable property to blood relatives like children, husband, wife, sister or brother may get costlier with the state government deciding to levy a higher stamp duty on such gift deed transactions. The Maharashtra Cabinet on Tuesday decided to levy stamp duty of 3 per cent at the prevailing ready reckoner (RR) rate on the registration of such documents which will be a significant rise from the nominal Rs 200 which was charged earlier. It also decided to hike the stamp duty levied on the conveyance of immovable property in urban areas to 5 per cent and that for rural areas to 4 per cent. These decisions are expected to generate Rs 300 crore in additional revenues for the state exchequer. Two years ago, the state Cabinet h...

RERA TO BOOST HOUSING DEMAND, PROTECT BUYERS, SAY REALTY FIRMS Developers expect housing demand to recover with the implementation of the real estate law from May 1 as it will protect buyers from unscrupulous players, while prices will remain stable due to huge unsold inventory. The two apex bodies of real estate developers-CREDAI and NAREDCO-feel that the implementation of this law will bring a paradigm change in the way Indian real estate sector functions, but see some “teething” problems initially. The two bodies wanted the government to exclude ongoing projects from the ambit of the Real Estate (Regulation and Development) Act, 2016, passed last year by Parliament, but their suggestions were not included in the law. “It’s a paradigm change in the real estate sector. It will protect buyers who have purchased flats in the past. The regulator under the RERA should find ways to help complete ongoing projects and provide relief to home buyers,” NAREDCO Chairman Rajeev Talwar said. CREDA...