Friday, February 27, 2009

Relief for the real estate sector - construction cost to come down

Rs 30,000 cr package to fire up the economy:

# 4% central excise duty cut will continue till March 31
# Excise duty, which was 10%, brought down to 8%
# Service tax reduced to 10% from 12%
# Custom duty exemption on naphtha import extended to March 31

Impact:

# Cement prices will drop by Rs 4-5 per bag
# Steel prices will come down by Rs 500-600/ ton

Benefits:

“It is a welcome relief for the real estate sector, where today the construction cost is almost more than 60% of the total sale price or even 70 % in some cases. So, a reduction of 2%o on service tax will at least lead to a 1-1 .5% reduction in overall construction costs,” Ramesha Sanka, CFO, DLF.
To read more, please, visit - UTVi

Relief for whom? For the builder or for the property buyer?

# Pre-paid mobile users having Rs 350 recharge coupon, will get additional talk time of Rs 10
# Post-paid users will get 2% reduction in monthly bills
# Air ticket for all business and first class could be cheaper by Rs 900-Rs 8000
# Motor car insurance and mediclaim will come down by 2%

But what about real estate rates? Do you think your builder will pass on the benefits to you? Please, share your views in the comments. (Comments Policy),

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1 comment:

  1. You should not expect bunch of goondas to be professional enough to pass the benefits to customers.

    ReplyDelete