Hyderabad: The Hyderabad chapter of the Confederation of Real Estate Developers Association of India on Tuesday rubbished reports that prices of mid segment realty in the city could fall following demonetisation.
Credai Hyderabad, which welcomed the Centre’s move to scrap Rs 500 and Rs 1000 notes, insisted that the mid-segment housing would have nothing more than a negligible effect on the sector, as most transactions rely on housing loans and savings. “Some 90 to 95 per cent of realty in Hyderabad caters to the mid-segment housing for the IT sector. The use of any unaccounted money is minimal as most people avail housing loans for their homes,” Credai Hyderabad president S Ram Reddy said.
He went on to add that he is more worried about the rise in the price of real estate in the state following the implementation of the GST in April. “The proposed GST rate for real estate is 18 per cent. It would subsume the sales tax and VAT, which currently stands at 5.5 per cent in Telangana and AP, but the prices would likely rise by 10 to 12 per cent following the implementation.”
When asked as to how demonetisation has hit the workforce, Mr Reddy said, “It has affected day-to-day wage labourers that constitute 20-25 per cent of our workforce. The rest of the workforce are either on contract with us or have access to banks.”