Majority of the stakeholders in the real estate sector including developers and financial institutions expect sales in the residential segment to increase in the coming six months, a Knight Frank report said on Monday.
According to the report, the positive sentiments can be largely attributed to the rationalisation of the Goods and Services Tax (GST) for under-construction properties and the multiple reductions in repo, or the Reserve Bank of India’s short-term lending rate for commercial banks.
“With steps in the positive direction by the government and the banking regulator, majority of stakeholders have expressed optimism and expect policy interventions to positively translate into new residential launches and sales in the coming six months,” said the report titled “Knight Frank’s Q1 2019 Sentiment Index Survey”.
“The rationalisation of the GST rate to 5 per cent for under-construction flats and 1 per cent for the affordable housing sector has also played a significant part in bolstering real estate sentiments for the coming six months,” it added.
As per the report, around 87 per cent of stakeholders opined that the sector will see new launches in the coming six months, while 85 per cent of the respondents said that the segregation in the sector between organised and unorganised developers would positively translate into demand in the coming six months.
On the prices of residential properties, the report said that majority of the stakeholders felt that residential prices will either remain in the current range or inch upwards in the coming six months.