GST & Real Estate

In the recent past, India has seen extensive developments with respect to the laws and policies that are being implemented. The first was Demonetization, followed by the RERA Act and the most recent being the implementation of Good & Services Tax Act (GST Act). GST Act has been implemented with the intent to remove cascading effect of taxes & to bring in more people under the tax net, however, many have been struggling to understand what it exactly does and how it would affect people.

With respect to real estate, it is unlikely that GST will have any impact on property prices.The current rate of 12 per cent on under-construction projects might marginally bring down prices in the affordable segment owing to input tax credits, but it is unlikely that similar impact will be felt in mid-priced or premium developments. Developers may get some benefits fo projects that are in the nascent stages, but will have to bear the tax burden of ready-to-move in projects, since they are kept out of GST ambit. 

One aspect that needs government’s immediate attention is the stamp duty charges. Since, they continue to remain along with GST and vary from state-to-state. The stamp duty rate averages between 5% - 7%. Abolishment of this would bring down the final costs of apartments.          

Broadly speaking, the act will be a game changer for the industry. Its comprehensive approach and uniform tax structure will not only ensure more transparency in the economy but also would be helpful in boosting the investor confidence.

Infrastructure Highlights: India’s March Towards The Future

  

Infrastructure is a key indicator of a nation's development. In the current scenario, India has been seeing a sustained infrastructure development. The expenditure on infrastructure rose by 10%, its total worth being Rs. 3,96,135crore. The sector has seen the launch of initiatives such as 'Housing For All' & 'Smart Cities' with a view to fast-track India’s progress. Indian urban centres are also seeing tremendous infrastructural investment and here are 5 significant initiatives that are likely to have a major impact in the not so distant future:

Bangalore just launched its 1st Metro phase

Bangalore's metro has expanded commute options to ease pressure on its roadways. The city very recently launched metro services; it connects JP Nagar, all the way till Nagasandra. The initiative is under the Smart Cities mission with a budget of ₹ 107 crore. The length of this phase is 42 kilometres.

Chennai's Satellite Bus Terminal

Chennai is developing better ways of commuting for its citizens, one of the projects being its satellite bus terminal located in Madhavaram. This project will cover 8 acres of land and will have capacity of handling 200 buses per day, thus improving connectivity and easing traffic.

Hyderabad to get its metro

The city of Hyderabad already ranks among the top Indian cities with a high standard of living (Mercer’s Quality of Living Rankings for 2017). Currently, this city is working towards building its own metro system. The projected length of this project is 72 kms, passing across 3 corridors. This project will set up 64 metro stations out of which 32 stations will have buildings or parking spaces.

Trans Harbour link in Mumbai by 2019

Known to be India's longest sea bridge, this link will cover a length of 22.5 kilometres. It would bind Mumbai and Navi Mumbai through roadways. The areas it would connect are Sewri, South Mumbai and Thane Creek, north of Elephanta Island. Also, it will provide access to the proposed Navi Mumbai International airport in the future.

Mumbai's Costal Road

Mumbai city is looking forward to decongest its traffic by building a 30km long costal road. This project will connect Mumbai's iconic Marine Drive, all the way till Kandivali. The total investmentfor this project is worth Rs. 12,000 crores. The project aims to bind South Mumbai to the Western suburbs and ease the road & rail commuting pressure in the Western line.

The infrastructure developments that are taking place, spell good news for India’s future. All corridors of transport that we construct will eventually raise values of real estate properties. We at House Of Hiranandani have great offering of apartments in Bangalore, Chennai & Hyderabad that ensure great connectivity and hassle-free commute.