50% residential units sold in last 6 quarters priced below Rs 50 lakh

Experts say CLSS benefits, effective GST rate are helping attract buyers

Over half of the residential units sold between the second quarter of 2017-18 financial year (FY) and the fourth quarter of FY19 were priced less than Rs 50 lakh, indicating that affordable housing is selling well in the country, said a recent study.

“After the RERA/GST implementations in Q1FY18, developers have tweaked their product offering to include more affordable and mid-income housing projects because that is where the demand lies. Further, CLSS (credit-linked savings scheme) benefits, coupled with lower effective goods and services tax (GST) rate of 8 per cent for affordable housing projects (1 per cent GST for projects