Friends
Eager to discuss w.r.t the "impact of budjet 2010 on real estate/construction sector".
My observation is that since cement prices have increased copnstruction cost becomes more. i may be wrong here.Kindly correct me if thatz the case
Inputs greatly appreciated
Thanks in advance
Regfards
PC
impact of budject on real estatre/construction sector
Re: impact of budject on real estatre/construction sector
Also Service tax on new residential property in a complex where payment was made to developer prior to completion certificate, is added. This going to increase the cost of the flats too.
Re: impact of budject on real estatre/construction sector
Budget 2010 will increase the cost of the Apartments. Buyers need to pay 10% as service Tax on the 33% of the Total Value of the Apartment. Builders definitely pass on this(Alongwith their cake) on to the buyers. So there will be additional burden on the Potential Buyers.
So it will affect the sale of Huge inventories already lying with Builders.
Only Plus point is that continuation of 1% Housing Interest Subsity on the low budget housing activity for one more year. Anyway this will not help in the Metros and Class 1 Cities as the cost of the project will never be within 10 lakhs for Middle class and high class people unless they go for a 1 BHK or 20X30 plot construction.
So it will affect the sale of Huge inventories already lying with Builders.
Only Plus point is that continuation of 1% Housing Interest Subsity on the low budget housing activity for one more year. Anyway this will not help in the Metros and Class 1 Cities as the cost of the project will never be within 10 lakhs for Middle class and high class people unless they go for a 1 BHK or 20X30 plot construction.