Real Estate Set to Surge after GST Cut on Cement, Construction Materials

Ashok Singh Jaunapuria, MD & CEO, SS Group, said, "The move towards a simplified two-slab GST regime can be a structural game-changer for the real estate sector. By easing tax complexities and reducing the overall burden on critical inputs, it not only makes housing more affordable for end-users but also strengthens developer confidence to launch new projects. On the commercial side, rationalisation lowers operational costs, which can accelerate the pace of Grade-A office, retail, and hospitality developments. Importantly, this clarity will help both domestic and global investors view Indian real estate as a more transparent and resilient asset class, fuelling sustainable housing demand."

Prateek Tiwari, MD, Prateek Group, said, "The timing of the GST cut on cement couldn’t have been more strategic. Festivals in India are associated with optimism and new beginnings, and homebuying is a natural extension of that sentiment. By reducing one of the heaviest tax burdens on construction, the government has created space for developers to sweeten deals, hold prices steady, or offer more flexible plans. For the sector, this is not just cost relief—it’s demand acceleration. We expect this festive season to reflect a clear surge in site visits and bookings."

Also Read: GST Rationalisation Sparks Real Estate Ahead of Festival Season

Yash Miglani, MD, Migsun Group, said that by reducing GST on construction materials, the government has provided significant relief to both homebuyers and developers. Cutting tax on cement from 28 percent to 18 percent and on works like tiles, bricks, and stone fittings from 12% to 5 percent is a visionary decision. This will lower the cost of housing projects, speed up delivery, and make home buying easier for common people. At the same time, this move will also strengthen infrastructure development and create a positive environment across the real estate sector.

Ishaan Singh, Director, AIPL, says, "The proposed two-slab GST structure can ease project costs by rationalizing rates on construction materials like cement, steel, or paint that heavily influence both housing and commercial projects. For homebuyers, that could mean a reduction in effective prices, especially in the first-time buyer segment. In commercial real estate, lower input costs improve project viability, making assets more attractive for occupiers and investors. Developers are likely to pass relief through, boosting confidence and real estate investment."