KOCHI: Demonetisation of high-value currencies and introduction of Goods and Services Tax (GST ) will have a positive impact on the realty sector, said HDFC Ltd regional manager C V Ignatius. Speaking at a session on ‘GST and Monetary Policy Impact of Demonetisation’ organised by the Confederation of Real Estate Developers’ Associations of India (CREDAI ) here on Saturday, he said the Central Government’s initiatives would boost demand and strengthen business in the organised segment of the realty sector in the medium and long term.
“Now, land prices and construction costs will come down. In the short term, the rate of interest on advances will ease by up to one percent, and two percent in the long run. This will enhance the demand for apartments and houses,” Ignatius said, adding that the real estate prices were expected to drop 10-15 percent in the near term, and advised buyers to wait before investing.
Jayesh Kariya of KPMG said the introduction of GST would have a positive impact on the construction industry. “It will change the way business is being done, and usher in a new taxation system that would be beneficial for organised players in the sector,” he said. “Around 3.5 crore people are employed in the country’s construction sector, which is the second largest employment provider.
The workforce in the Indian construction sector is 7.5 percent of the total global workforce in the sector,” said KPMG director Ashutosh Kapoor. “But, the incidence of accidents in the Indian construction sector is very high, compared to other developing nations. So, the industry should concentrate more on the safety aspects,” he added. CREDAI National- Skilling head Surajit Roy said the agency was planning to impart skills among 25,000 labourers in the next four months, under the PMKVY scheme of the Centre.