High Demand for affordable houses in Indore
Sales of property led by under construction residential units and affordable housing segment have picked up after reduction in tax levy. According to Confederation of Real Estate Developers' Associations of India (CREDAI), Indore chapter, sale of property in April is likely to remain around 10 per cent higher in comparison to a year ago in the same period. Property dealers said increase in sales for under construction housing will pump in money to projects that were stuck due to financial constraints. Major chunk of demand is coming for properties at Dewas Naka, Talawali, Ujjain road, Mhow and Rau, property consultants said. Builder said the restriction on input tax credit as part of new reduced levies has squeezed profitability of relators. The GST rates for affordable housing have been reduced from 8 percent (with full input tax credit) to 1 percent (without input tax credit). For other segments the rates have been reduced from 12 percent (with full input tax credit) to 5 percent (without input tax credit).
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