NEW DELHI: Ready-to-move-in flats are preferred choice for home buyers but the demand for newly launched units has also improved after reduction of GST rates from this month, according to a survey by property consultant Anarock.
The implementation of new real estate law RERA and lower GST rates immensely helped revive consumer faith in new launch properties, Anarock said in its latest Consumer Sentiment Survey H1 2019.
The consultant found out that 70 per cent of respondents preferred properties priced within Rs 80 lakh.
"While ready-to-move-in homes remained the preferred choice for several homebuyers, new launches saw a decent revival. Over 18 per cent of respondents now prefer new launch properties as against mere 5 per cent in the previous survey," it said.
From April 1, GST rate on affordable homes has been reduced to 1 per cent from earlier 8 per cent, while input tax credit benefit has been done away with.
The GST on under-construction flats, which are not under the affordable housing segment, has been reduced to 5 per cent from 12 per cent.
"Our latest survey confirms that a conducive reform-driven market environment and government sops have breathed life to Indian real estate. Long-term investors with realistic returns expectations are returning. 58 per cent of our respondents bought property for end-use, and 42 per cent bought for investment - up by 10 per cent against the previous survey," Anarock Chairman Anuj Puri said.
More than attractive prices, effective RERA enforcement influenced over 50 per cent buyers in Delhi-NCR to take the real estate plunge in 2018. In Kolkata, nearly 58 per cent of buyers took the plunge due to lower home loan rates.
The recent budget offered major benefits to property investors, such as increased TDS threshold on rental income from Rs 1.8 lakh to Rs 2.4 lakh and the benefit of rolling capital gains tax from investment in one house over to two new houses.