Property prices will increase by 2% as service tax go up

By Accommodation Times Bureau

New Delhi:
National Real Estate Development Council said that, “property rates will rise approx by 2% as in the union budget excise duty and service tax has been increased from 10 percent to 12 percent.”
In a media conclave National Real Estate Development Council (NAREDCO) President Navin M Raheja said that, “Property prices are surely going to rise. Now we have to see who will rise how much. However, it will increase by at least two per cent.”
The raising of service tax from 10% to 12% is going to negate the growth of the housing sector, already burdened and in dire need of sops from the government. The interest subsidy on home loans is not enough and will not help the low income group segment, realty player said.
Market players suggested that, government to announce some special packages for affordable housing segment, but that did not happen. The housing industry which contributes nearly 6.5% of GDP has been ignored once again by the government and not given its due status in the economy of the country.

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