Sluggish sales pulled down average prices of residential properties in Kolkata by 4 per cent on-year during July-December 2018, realty consultant Knight Frank India said on Tuesday.
"In Rajarhat and the eastern micro-markets (of Kolkata), residential sales have dwindled massively by 50 per cent and 38 per cent Y-o-Y, respectively, in the same period," Knight Frank India AVP Divya Grovers said.
However, due to early development of affordable housing projects in northern and southern peripherals in the past few years, and good response from end-users, the southern micro-markets reversed the sales downtrend to post a 13 per cent on-year upswing in residential sales in H2 2018, it said.
In the past one year, many real estate developers launched housing projects ranging from Rs 18 lakh to Rs 50 lakh ticket size categories across configurations, Knight Frank India said.
The cut in GST on affordable housing will also have a positive impact on demand, it said.
In a big relief to home buyers, the GST Council last month slashed tax rates on under-construction housing properties to 5 per cent without input tax credit, from the existing 12 per cent.
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