Realty market back to pre-crisis peak in 2010

Friday, 31 December 2010, 18:46 IST
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New Delhi: A fast-growing economy fired up the real estate market after almost a year-and-a-half of property gloom, with prices touching the pre-crisis peak and companies announcing structures that will pierce the sky. The property party would have been perfect had it not been for the service tax slapped on under-construction buildings and as expected, the burden was passed on to the buyer. The Budget proposal meant that 25 percent of the gross sale value of the property would be taxed and this resulted in a 2.5 percent increase in the rates of houses under construction. Prices, on an average, increased by 30 percent across India, forcing the Reserve Bank of India to tighten the norms on lenders' exposure to the realty sector.
Source: PTI
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