As an impact of budget 2013, the prices for top-end housing segment will shoot up. In the opinion of the experts the top-end housing segment will be hit harder by the budget.
Though the budget was considered to be a real estate friendly one, it did not turn up in that way. As against the expectation of the real estate developers, the budget 2013-14 became a blow to the housing segment, especially to the top-end housing segment.
It may not be affecting the affordable housing segment or mid-segment housing much. But it, the budget, will surely have an adverse impact on the top-end housing segment.
Overburden is laid on the top-earners. They will have to pay an additional tax for everything they purchase. They are the sole section who purchases anything of luxury. Almost all luxury items, including luxury housing units, are going to be costlier.
For the home buyers luxury homes will be more expensive now as the budget has proposed to lower the reduction rate from 75% to 70%. The revised rate will be applicable to all homes above 2000 sq. ft. and above Rs.1 Cr.
The budget will be more affecting the top-end housing segment in the metro cities where the property prices are already beyond Rs.1 Cr. Bangalore, Delhi and Mumbai will be more affected as these cities have more costly homes.
However the luxury housing segment will not be much affected in the tier II cities as there aren’t many houses worth over Rs.1 Cr in these cities. So the top-end housing segment in Pune or Hyderabad will not be much affected.
The home buyers will have to bear the overburden of additional service charges as well. The revised rate will improve the service charges and it will be also levied on to the shoulders of buyers by the builders. So in short, buying a luxury home will be costlier in all the ways now in India.