Business Standard

Budget 2019 wishlist: Here are the key challenges for real estate sector

While there has been an upsurge in activities in asset classes such as commercial, warehousing and retail, the residential market has largely seen a flattish trend

Earlier, the GST Council had decided that with effect from  April 1, builders of all under-construction houses would have two options - either pay 12% GST with input tax credit or 5% GST without input tax credit
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Last 12 to 24 months have been a mixed bag for the real estate (RE) sector as a whole.  While there has been an upsurge in activities in asset classes such as commercial, warehousing and retail, the residential market has largely seen a flattish trend with a few bumps coming from the affordable housing space.  Start-ups are lining up in the RE sector with co- living business models and the sector also witnessed its maiden REIT listing.  

KEY CHALLENGES

  • Impact of GST on (i) construction costs, especially for Built to Lease assets where subsequent credit is not available,  (ii) Premium

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First Published: Jun 29 2019 | 12:53 AM IST

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