The government’s decision to reduce GST rates on cement from 28 percent to 18 percent and on key construction materials like sand and bricks from 12 percent to 5 percent is being welcomed across the real estate sector. Industry leaders say this move will significantly lower project costs, improve affordability for homebuyers, and inject fresh momentum into housing market and commercial developments. Coupled with recent interest rate cuts, this reform is expected to enhance consumer confidence and stimulate budget property investments.
Developers also see this as a structural boost for the sector, enabling faster project delivery, maintaining quality standards, and making commercial and residential investments more attractive.
Dr. Vishesh Rawat, Vice President and Head of Marketing, Sales, and CRM at M2K Group, said, "The reduction of GST on cement is a welcome relief for the housing sector, given its substantial share in construction costs. By easing project expenses, this reform directly translates into cost savings for buyers, especially those considering under-construction properties. The timing during the festive season adds further momentum, strengthening sentiment and encouraging more families to invest in homeownership."
Shaurya Garg, MD, North Wind Estates, said, "The government’s decision to rationalize GST on cement, sand, bricks, and other inputs will act as a strong catalyst for the real estate industry. Lowering construction costs will encourage developers to deliver projects at more competitive prices, benefitting homebuyers directly. Additionally, the wider reduction in GST across goods will stimulate consumption and economic activity, which in turn will create a more vibrant environment for real estate growth momentum."
Umang Jindal, CEO, Homeland, said, "The GST reduction on cement from 28 percent to 18 percent, announced at a crucial festive juncture, is set to energise the housing market by reducing costs for developers and creating renewed optimism among buyers. By easing the tax burden on one of the most essential construction materials, affordability improves, particularly for first-time buyers and the affordable housing segment. With interest rates stable and sentiment already positive, this reform acts as a catalyst for fence-sitters, giving them the confidence to move forward with their home buying decisions during this festive season."
Gurpal Singh Chawla, MD, TREVOC Group, said, "The reduction of GST rates on key construction materials is a timely and progressive decision that will benefit all stakeholders in the real estate ecosystem. This move enhances the sector’s overall competitiveness and is poised to give a strong boost to real estate growth. At a macro level, it aligns with the government’s push for infrastructure-led development, further strengthening demand and investor confidence across the sector."
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