Union Budget 2015 and Real Estate industry

Indian Finance minister has just spelled out the union budget 2015.
We discuss its impact on the real estate industry:

Measure: Service tax hiked from 12.36% to 14%
How does it impact buyers/owners: This is expected to impact the sales of under-construction properties as the same would be costlier by at least 1.5%. Also, owners in ready to move flats will continue to pay extra as part of monthly maintenance and other miscellaneous charges on which ST is applicable.
Verdict: Thumbs down

Measure: Foreign investment in Real estate
How does it impact buyers/owners: Expected to bring competition and hence improve overall quality of offerings.
Verdict: Thumbs up

Measure: No direct impact on Home loan
How does it impact buyers/owners: Much was expected on this but no direct measures have been announced for reductions of home loan rates or increase of tax exemption limit.
Verdict: Thumbs down

Overall the budget has been a let down for Real estate industry. No directions have been announced on rate cuts. All eyes would now be on RBI’s next notification of lending rates.

Comments/Feedback invited.

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Last Updated on February 28, 2015 by Go4Reviews