GST: property rates may shoot up

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Property prices in the city and rest of Telangana are all set to increase because of the introduction of GST (Goods and Service Tax), Real Estate Sector leaders have predicted. The cost of every property might increase by 20 per cent though the prices of construction material like cement is likely to go up marginally, said S. Ram Reddy, president, CREDAI (Confederation of Real Estate Developers Association of India), Hyderabad. He said that with service tax not reaching the service providers or developers but only the government, the prices might have to be increased by them. He also added that the GST rates would be high when compared to just VAT or Service Tax, which may lead to higher pricing of properties.

However, other members of the association felt that it was too early to know the impact of GST and differed on the exact increase of prices.

The members of CREDAI spoke at a press meet held in the city on Wednesday to announce the fifth edition of ‘Hyderabad property Show-2016’ which will be held from August 13. The three-day event will have 115 developers showcasing more than 15,000 properties at Hitex. Mr. Reddy said that with good infrastructure and abundant water supply in the near future, it is wise to invest in properties in the next three months before the GST is levied. The CREDAI president said that with IT majors and R&D centres being set up in the city and with favourable policies by the State government, the city will be a major hub for housing too.

Ramchandra Reddy, General Secretary, CREDAI Telangana said that compared to previous editions, the upcoming show was in higher demand with all types of builders willing to set up their stalls. He said that the venue has been designed in such a way that there is ample space to move around the stalls. Apart from builders, the show will also see the participation of manufacturers of building materials, financial institutions and consultants.

Read more at: http://www.thehindu.com/news/cities/Hyderabad/gst-property-rates-may-shoot-up/article8977594.ece