Manappuram Home Finance shares view post lowering tax rates in Real Estate

The GST council’s decision to reduce the GST rates on affordable housing from eight percent to one percent is a a buyer friendly measure which will increase the appetite for such projects across the country. The additional demand will address the supply overhang, and spur new construction activity.

The reduction of rates on other housing segments is also welcome as it makes unsold or under construction inventory with builders more attractive to buyers. We also do not foresee withdrawal of input credit affecting either buyer or builder sentiments.