Millions of home buyers who buy flats in stuck residential projects across the country may get a big relief from Finance Minister Nirmala Sitharaman this week. Sources say a financial support (stress fund) is likely to be announced this week to address the cash shortage of real estate companies and get home buyers their home.
Along with this, there is also a possibility of a change in the GST on a residential project under construction. Sources said that the GST Council had reduced the GST on houses under construction from 12 to five per cent. Also, GST on affordable housing projects was reduced from eight to one per cent. However, the system of input tax credit was also scrapped.
This increased the cost of construction on the developer. He was putting the burden on the home buyers. The issue was raised recently by representatives of home buyers with the finance minister. In view of this, there is a readiness to change the GST rate on the project under construction.
Sources connected with the case say that the rate of GST on a residential project under construction can be increased from five per cent to eight per cent. But the benefit of input credit will be given again. This will reduce the construction cost of the project. The developer will benefit from this to home buyers.
This increased the cost of construction on the developer. He was putting the burden on the home buyers. The issue was raised recently by representatives of home buyers with the finance minister. In view of this, there is a readiness to change the GST rate on the project under construction.
Sources connected with the case say that the rate of GST on a residential project under construction can be increased from five per cent to eight per cent. But the benefit of input credit will be given again. This will reduce the construction cost of the project. The developer will benefit from this to home buyers.
Cash flows must be: Space India Group Chairman and Managing Director Rakesh Yadav said that hundreds of the project work had halted liquidity crisis or moving at a very slow speed. This is hurting both real estate companies and home buyers. Due to lack of funds, the developers are unable to complete the project work. If the cash problem in this sector goes away, the way for home buyers to get a home will be cleared.
FDI regulations of single brand retail business eased soon
Demand will increase due to cheap loans: Finance Minister has announced an additional Rs 20 thousand crore to housing financial companies. At the same time banks have been asked to link the debt repo rate. Experts say that this will increase the availability of credit and reduce the EMI of the loan.
* 1.74 lakh homes in 220 projects were stuck in seven major cities.
* 1.18 lakh flats are stuck only in NCR.
* 1774 billion worth of stuck project.
* It is the goal of the government to provide houses to all by 2022.
According to a report by brokerage company Enarock, the sale of houses has decreased by 28% , the price of houses has increased marginally by seven percent during the last five years, while their demand has decreased by 28% during this period. Similarly, the supply of houses has declined by 64 percent during this period.
That’s why the slowdown in real estate
property expert Pradeep Mishra said that the reason for the slowdown in this sector is increased supply and decrease in demand. In 2012, many developers launched several projects simultaneously without assessing their financial status and later failed to complete it. This caused buyers confidence and sales fell.
Five Lakh Home Buyers Affected
According to the Forum for People’s Collective Efforts, the delay in projects has affected more than five lakh home buyers across the country. Most are from NCR.
Good impact on the economy.
NAREDCO President Niranjan Hiranandani said that rationalizing taxes on realty and removing the financial crisis will have a positive impact on the economy.
