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),

Feel free to call me:

I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market (so, i do not charge anything for the first 5 minutes!) Call +91 98600 44110

Subscribe for Free!

To receive free emails or free RSS feeds, please, subscribe to Ravi Karandeekar's Pune Real Estate Market News Blog

For my blogs on real estate projects near Hinjewadi, real estate investment, advertising and other related topics, please, visit and join my Ravi Karandeekar's Pune Real Estate Blog Group