Couldn't care less, developers feel sector in a blind spot

HYDERABAD: Much like the rest of India, the real estate market in Hyderabad too was left crestfallen on Thursday, with the finance minister completely ignoring this sector in his Budget speech. Industry insiders unanimously said that 2018-19 Budget had nothing on offer for them, despite the sector continuing to be sluggish.

The biggest upsets - no cuts in the Goods and

Services Tax

(on property sales), which is currently 12% and no industry status for the sector (despite introduction of the

RERA

Act). City developers said sales in the local market have been severely hit post GST, and that they were pinning their hopes on the Budget for its revival. "While the Prime Minister's vision about bolstering the growth of the affordable housing market was a step in the right direction, the government has done nothing to take it forward," said

Ashwin Rao

, director, Manbhum Constructions. He added: "We were hopeful of being given industry status, considering it is now a regulated industry with RERA in place." The status, developers said, would ease the flow of finances into the business and, in turn, make homes more affordable. As would a reduction in GST. At present, home-buyers pay a 18 per cent tax on property (12 per cent GST+5 per cent stamps and registration tax levied by the state), which the highest in the country. "It should have been cut to 6 per cent," said Veera Babu, managing director, Cushman & Wakefield (Hyderabad) saying how the sector has "hit a wall" with this Budget.