Rating agency Icra said that even though the government announced various sops for the homebuyers recently, the general outlook for the country’s residential real estate sector remains negative. Some of the main reasons behind this outlook are challenging macro-economic environment, the gap in demand-supply in several markets, and funding constraints for the builders.
The report said that GST rates for affordable housing are reduced to 1% from the previous 8%. Similarly, the rates for other segments have been slashed to 5% from the previous 12%.
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