The Impact of GST on Real Estate and Home buyers

GST has simplified the system. It has had an undeniable impact on the real estate market, but has this impact been positive? What does it mean for home buyers?

Affordable housing segment Non-affordable housing segment

Type of residential real estate property

Residential properties having a carpet area of 60 square meters in metropolitan cities, 90 square meters in non-metropolitan cities, and have a value of up to Rs 45 lakh in both are included in affordable properties.

How does the GST Council define the affordable housing segment?

How the change affected real estate?

A decreased cost of construction    for developers More transparency Benefits for the rental market

How the change affected homebuyers?

– An increased cost of construction for buyers – Benefits for the buyers of affordable housing – Benefits for the buyers of non-affordable    housing – Inclination towards constructed properties

The cost of construction for real estate developers decreased because of the introduction of GST as it subsumed multiple other taxes under the same tax.