Asia Bizz: India’s Budget 2012-13 has not only affected the motor industry, but has also affected the real estate market in the Asian nation. Due to high rates of service tax and excise duty announced lately, the real estate prices in Delhi and Mumbai are not likely to come down any time soon.
So for people in India who are looking for a new home, there is a huge possibility that they might have to shell out more money for their dream home. A report by CRISIL Research stated that new home prices in Mumbai are likely to come down in the year 2012, but a sharp rise of prices has been noticed in construction as well as finding costs; in addition to the Development Control Regulations, which will result in the increase in the cost for builders and also prevent a reduction in home prices.
In the year 2012, it is expected that there would be a 7 to 9 percent increase for the cost of key inputs.
The recent amendments in the DCR will increase the cost of the builders further by 15 percent on an average. The DCR norms help in governing the land development in Mumbai. The new rules came to effect from January 2012 and had revised the method of calculating the floor space index.