5 Things that will immediately reduce property Costs.

Q: Which are the things that can reduce the property cost?

Roshni Pawal, Mumbai

5th March 2015

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Replies (5)

@Shreya,
If acquisition of properties are bit compact for the developers, benefits are bound come to the buyers. Thus, it gives us a clear view that, if a developer is granted with a reduced cost for acquiring land, the price of the projects will automatically come down. And as a result the developer will keep the margin of the profit and pass on the benefits to the consumer.

Dev Patel, Mumbai

7th March 2015

Comment

@Ashish,
Similarly, red tapism needs to be addressed seriously as it will give a boost to the developers to complete the construction on time, which in turn will result in lowered property cost.

Shreya Agarwal, Mumbai

6th March 2015

Comment

As far as Regulatory Policy Framework is concerned, If the government gives some kind of incentives to the real estate industry in terms of easing out on the regulatory policy frame work, the approval process, the guidance value and makes land acquisition little cheaper, than the benefits will automatically pass on to the consumers.

Ashish Sharma, Mumbai

6th March 2015

Comment

Similarly, guidance value are increased randomly without any agreement from the industry stakeholders. And this increase directly results in higher property cost. Due to increase in guidance values, few properties in Taloja, Navi Mumbai were selling at a price of Rs 4350/sq-ft. Looking at the infrastructure of the place, these values are not at all justified.

Thus, government should form a panel involving all the stakeholders in order to arrive at a right guidance value.

Shaunak Verdla, Mumbai

5th March 2015

Comment

It is not just the guidance value and the land acquisition, rather the discrepancies existing between various states in terms of stamp duty and registration too. It is important to have a stable low tax regime, particularly in the area of service taxes and in terms of registration and stamp duty. For instance; Tamil Nadu, today has almost a rate of 8% for registration and stamp duty, which is relatively higher and shores up as a serious deterrent for catalysing home demand.

Dev Patel, Mumbai

5th March 2015

Some of the major issues that are currently following the Indian real estate sector, realty experts zeroed on five major things that will help reduce property costs to a large extent. These are :- 1) Reducing Multiple Taxes, 2) Involve Stakeholders while deciding Guidance Value, 3) Stable tax regime, 4) Proper Regulatory Policy Framework and 5) Lowering Land Acquisition Cost.

Shaunak Verdla, Mumbai

5th March 2015

Comment

You are absolutely right Shaunak,
It is obvious that, when the developers are enforced to pay huge amount of taxes, the pressure indirectly comes to the consumers. Presently, there are multiple taxes, both direct and indirect, that home buyers need to pay to the government. In order to bring down property costs, a major initiative by the government by way of either reducing or doing away with certain taxes will be the right step forward.

Dev Patel, Mumbai

5th March 2015