Real estate sector is deeply inter-linked with GST (Goods and Service Tax). GST has the power to increase transparency in its functionality and even reduce the cost of ownership of homes and buyers.
GST, which has been one of the longest awaited tax reforms, got unanimous approval from both houses of parliament this monsoon session. Opting for residential projects in Gurgaon has also seen an increment, as individuals will have to pay additional VAT (Value Added Tax) if they purchase a project which is still under-construction.
The demand of residential projects is likely to get increased as recently, Haryana Government has approved proposals which will affect pricing of residential apartments.
The Haryana government has approved the two-pronged proposals:
- Increase in the floor area ratio (FAR) in the range of 0.35 to 0.80.
- Allow plot owners to build more space for housing units in Gurgaon by increasing ground coverage.
These proposals will definitely help in enhancing the demand of residential projects in Gurgaon and fully furnished flats in Gurgaon as well.