GST rate cut lead to realty market uptick - CREDAI Bengaluru announces Realty Expos
Bengaluru, February 27, 2019: The realty market is cheering on the GST rate cut announced recently by the GST Council of India. GST rate cut on under construction properties have been reduced from 12% to 5% and for affordable housing, from 8% to 1% and is expected to impact the real estate sales amongst the fence sitters waiting to decide on investing in these properties. Many potential home buyers have already reached out to the developers on their soon-to purchase decision.
In the wake of GST rate cuts, increasing residential sales and new project launches, CREDAI (The Confederation of Real Estate Developers Association of India) Bengaluru has announced its first edition of Annual Realty Expo 2019. The expo is going to be held on two consecutive weekends starting on March 2-3, 2019 at Hotel Lalit Ashok, Kumara Krupa High Grounds and on March 9-10, 2019 at RadissionBlu (Park Plaza), Marathahalli. The new tax benefits offered in the budget, stagnant prices and attractive locations are few of the factors that will make home buyers attend the CREDAI Realty Expo.
30 number of developers will be participating in the expo in Lalit Ashok starting from March 2, 2019. Additionally, 7 financial institutions will also be present at the expo venue to assist home buyers regarding home loans and the benefits offered by them. With this expo, CREDAI Bengaluru will bring the entire home buying experience under one roof.
The sale of residential properties in Bengaluru has witnessed a significant rise in the past six months. According to a report, during the second half of 2018, residential property sale in the city surged by 35% compared to the previous year 2017. The department of Stamps and Registration shared that the real estate market in Bengaluru recorded nearly 20% rise in revenue from property registrations in the last seven months of 2018 in comparison to 2017. This indicates that the property buyers are not in a “wait mode” as the city has been offering the best residential properties at a better price.
Commenting on the first edition of the expo, Mr. Ashish Puravankara, President, CREDAI Bengaluru said,“Our expo not only caters to the people who are looking at buying a house, but it also presents a plethora of options to millennials and others interested to invest in real estate sector. The GST rate cut will provide a much needed relief to this sector. People who are currently not able to decide due to the price and tax factors will be inclined to make new decisions as the new GST rates are conducive and more affordable. CREDAI Realty Expo endeavours to present a unique experience to all its visitors in terms of buying their dream home and providing real estate and financial suggestions, all on a single platform. Additionally, prospective home buyers can choose from mid-range to uber luxury projects as well, that the participating developers are showcasing across multiple locations. It is an exhibition with the best of available residential projects in the city, customers will be spoiled for choice.”
Highlighting the fact on investing in the residential projects in Bangalore, Mr. Adarsh Narahari, Secretary, CREDAI Bengaluru said,“Today,home buyers have different demands when it comes to buyingany real estate property. While the developers try to fulfill them, it has resulted in a decline of unsold inventory by 15% in Bengaluru which indicates that there will be more project launches in the near future. Transparency by the developers, GST, tax benefit provided by the government, affordable housing segment have prompted many to invest in the real estate projects without a second thought. With more tax benefits available for real estate purchase, that was announced in the interim budget in February 2019, many have already started approaching the developers for their second homes. For them, the CREDAI Realty Expo will be a good opportunity to explore a variety of projects.”
Talking about the importance of CREDAI expo Mr. A Bimal Hegde, Chairman, CREDAI Expo Committee opined that “Bangalore is growing day by day. The infrastructure of the city is also seeing more development. Metro is trying to provide end to end connectivity by increasing its stretch every year. All these factors are leading to the growth of real estate in the city and the demand is increasing day by day. This is the best time for the real estate investment as the prices are stagnant and potential buyers have more options to choose from in the city”.