GST rate cut boosts housing sales by 30%

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The rate cut on houses under Goods and Services Tax (GST) implemented from April has boosted sales of houses with around 30 percent increase in registries recorded in April as against a year ago in the same period, data from the registrar office showed. Registries in May are likely to jump over 30 percent as against a year ago as the trend suggests, officials said. Senior district registrar Balkrishna More said, “In April, registries of Rs 93 crore were reported as against Rs 72 crore in the same period a year ago. The trend looks good after the rate cut that led to a spike in purchases.” As per the data from the registrar office, registries worth Rs 85 crore were reported as on May 25. Property experts said, most of the demand has propped up in affordable segment and plots. More said, “In May, property registrations is likely to cross Rs 100 crore.”

The new rate of levy is set at 5 percent on housing properties under construction from the existing 12 percent and one percent on affordable housing from 8 percent. Confederation of Real Estate Developers’ Associations of India (CREDAI) Indore chapter spokesperson Atul Jhawar said, “Customers who were on hold, have come in the market. The wait and watch period is over for many as a lot of customers were awaiting some clarity on the tax front.” Demand for affordable houses, plots and independent residential properties is ruling the real estate market in the region and the trend is likely to continue this year, realtors said. As per developers, apart from affordable houses, plots in the range of 600 sq ft to 1,000 sq ft are in high demand.

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