As Dussehra draws near, home seekers are wearing brighter smiles and harboring greater expectations for booking their dream homes this year. The peak festive season promises sweeter deals, thanks to some significant decisions taken at the 56th meeting of the GST Council held on September 3, 2025.
Let’s explore the benefits that real estate analysts and association heads foresee following these developments.
Dr. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL, shed light on the significance of the announcement:
“In India, developers do not get the full benefit of Input Tax Credit (ITC) in real estate, and hence, the high GST rate on cement—currently at 28%—adds to the final apartment cost. The government’s decision to bring down the GST rate to 18% is a welcome move. The impact of this reduction will vary across different segments of the real estate market.”
He further explained the expected impact on the residential segment, which is a strong driver of Indian real estate:
“From our ground-level data pertaining to live projects, we believe the reduction in home prices may range between 1-1.5%, considering various types of residential projects and effective cement cost reduction due to cascading and base price adjustments. This assumes developers pass the entire benefit to customers.”
Dr. Niranjan Hiranandani, Chairman of Hiranandani and NAREDCO National, called the GST rationalization a “festive bonanza” for Indian consumers and a strategic boost for the economy.
He said,
“For the real estate and infrastructure sectors, the reduction of GST on critical construction materials like cement and steel from 28% to 18% is a landmark reform. This will significantly ease input costs, improve project viability, and accelerate infrastructure development across the country. Affordable housing, in particular, stands to gain as reduced construction costs can be passed on to home buyers, making homes more accessible while supporting the government’s Housing for All vision. This rationalization is not just a boost for developers—it is a win-win for consumers, the housing sector, and India’s long-term growth story.”
G Hari Babu, National President of NAREDCO, emphasized the direct benefits of lower GST on key materials:
“Lower GST on cement and steel will directly reduce costs. Projects will become more viable and progress faster. Affordable housing will gain the most, as reduced construction costs can be passed on to home buyers. Announced during the festive season, it will lift consumer sentiment and create fresh demand. This is a win-win for consumers, the real estate sector, and the nation’s growth story.”
Vikas Jain, President of NAREDCO Maharashtra NextGen, highlighted the broader impact of the GST changes:
“Simplifying tax slabs brings much-needed clarity and predictability—essential for innovation in design, sustainable developments, and faster deliveries. If suppliers pass on these savings, home buyers stand to benefit considerably.”
With these positive developments, the stage is set for a fabulous 2025 festive season, filled with hopes of concrete expectations coming true for home buyers across the country.
https://www.freepressjournal.in/business/gst-rate-cut-on-cement-what-it-means-for-homebuyers-this-festive-season
