January 30, 2020

Residential sector has a high scope of demand due to Tax Reduction

Rakesh Reddy, Director, Aparna Constructions, Multiple Sources

The recent Tax relief policies, increased deduction on home loans, and rationalization of GST has turned in the favour of home-buyers. As buying property continues to become affordable, it also increases the demand for the realty sector. Our Director Mr. Rakesh Reddy has anticipated the various factors affecting this demand, here are some insights:
  • Income tax relief: The market opportunities can widen up as tax relief can make property affordable for home buyers.
  • Implementation of Alternative Investment Fund (AIF): By providing funds to the stalled projects, not only the construction groups can benefit, but the home-buyers awaiting for their properties too.
  • GST rationalization: The reduction of GST on the under-construction projects had a minimal impact. However, further rationalisation by the government on the construction materials can help bring down the cost burden of the under-construction projects.
  • Industry status: With the provision of Industry status, the realty sector can benefit from the lower cost of financing and affordable rates for the home-buyers.
  • Single window clearance: As construction processes can take a huge time to complete, the duration can be cut down by streamlining the process and implementing single-window clearance.
To know more about how these factors can help boost the demand for the realty sector, read the full articles here