Realty Prices to go up?

Mumbai, BM press:

Considering the latest announcements that have been made with regards to the construction sector and given the increase in steel and cement prices, a price rise in the realty industry seems inevitable.

Last week it was announced that VAT i.e Value Added Tax @ 5% will be levied on all constructions after june 2006. A day later came an announcement of builders being able to charge a 4.5% service tax. Obviously, no builder is going to pay the VAT from his own pocket and the burden will be ultimately transferred to the final buyers.

Also adding to this is the Inflation rate of India which is close to 8% making basic necessities more expensive than ever. And the RBI increasing the Repo rates are adding tho the woes as getting loans has just got a lil more burdening.

So buying a dream home is proving to be a costly dream now.. Watch out for the growth in Tier II and Tier III cities. And if any plans to invest in the realty sector/lands or plots do take these cities into consideration.

"Mere desh ki dharti sona ugle, ugle heere moti... ..mere desh ki dharti.."
Apparently, nothing comes for free in this world... so what if u grow diamond and gold in your backyard.. all hypothetical!!