States Should Not Levy Stamp Duty On Affordable Housing: DLF CEO
States should not levy stamp duty on affordable housing to boost demand for low-cost homes, realty major DLF’s CEO said. He said the Centre has already reduced GST on affordable housing to 8 percent and is also providing interest subsidy to home buyers.
There should be no stamp duty on apartments up to 60 square meters, he said while addressing a real estate conference organised by CII and property consultant CBRE. The real estate should not be treated as ‘milking cow’ and added that there is a case for even lowering the GST rate from current 12 percent.
He disagreed that the real estate sector has faced triple whammy in form of demonetisation, new realty law RERA and the GST, saying these are great reforms that will bring transparency in the sector.
DLF’s CEO said there is a huge opportunity in the real estate sector and asked developers to encash it by creating surplus housing stock. CBRE Chairman India and South East Asia Anshuman Magazine said the RERA will drive demand for housing as the new legislation would boost consumer confidence.
He said the technology would be a big disruptor and game changer going forward in the real estate. Realty portal Housing.com Chief Business Officer said housing sales and launches have improved, while unsold inventories are getting reduced. Globally, real estate is going for a change and we need to embrace change, he added.
Confederation of Real Estate Developers’ Associations of India (CREDAI) Chairman stressed there is a lot of action on the ground in affordable housing segment where margins are low but huge scope for volumes. He also said after sales service is important in the housing market.
Tata Housing MD & CEO said for the company, living up to the brand was important, sustaining it is also important.
He added that the reforms like RERA (Real Estate (Regulation and Development) Act) would bring a .lot of discipline among developed but it will take 10-15 years for the sector to become organised.
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