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

Vikas Dua, Founder & Director, Chintamanis, said, "Truly a Diwali gift for the Indian consumer by the GST Council under the leadership of the Hon’ble Prime Minister. This rationalisation of GST slabs marks a progressive step for the broader economy. It is not just about real estate—it is about giving a much-needed boost to the entire ecosystem. When agriculture, industry, and intermediaries benefit, the overall economy strengthens, and that ripple effect inevitably supports real estate growth as well. While for the real estate sector the changes may not appear transformative on a standalone basis, the reduction of GST on cement is a long-awaited and welcome relief. More importantly, the collective impact of these measures will drive greater efficiency, affordability, and confidence across the economy. With such forward-looking decisions, one cannot help but wonder—can we expect another surprise as we move closer to Diwali?”

Dr. Amish Bhutani, MD, Group 108, added that the recent GST reduction on cement—from 28 percent to 18 percent directly enhances the viability of real estate projects. Offices and retail developments are highly capital-intensive, and this cut in material cost significantly strengthens project economics. For developers, it enables faster rollouts and sharper delivery timelines; for occupiers, it translates into higher quality premium workspaces at more competitive rentals, further stimulating demand across the segment. With India’s office market already witnessing strong absorption from global firms, this cost relief arrives at a timely juncture, poised to accelerate supply pipelines and fuel sectorial growth.

Karishmah Siingh, President - Sales, Marketing & CRM, Sattva Group:  

This GST reduction on cement represents a pivotal reform that fundamentally shifts the affordability equation for Indian homebuyers. With Rs. 12-15 per square foot in direct savings, builders now have the flexibility to pass on meaningful cost reductions to end consumers, making homeownership a realistic aspiration rather than a distant dream. What's particularly compelling is how this creates a virtuous cycle as construction costs become more manageable, developers can price their projects more competitively, which in turn encourages fence-sitting buyers to move from aspiration to action. The immediate market enthusiasm reflects a broader confidence that we're entering a phase where homebuying decisions will be driven by genuine affordability rather than constrained by inflated input costs. This reform essentially removes a major psychological barrier for homebuyers who have been waiting for the right moment to invest in their future.

Mohit Batra, Regional Director, Realistic Realtors, said, “The government’s decision to cut GST on cement from 28 percent to 18 percent is a positive move for both residential and commercial real estate. For homebuyers, it helps reduce costs in the mid and affordable housing segments, while for developers of offices, retail, and hospitality projects, it boosts project viability. This dual benefit is likely to drive stronger demand from both buyers and investors. Announcements like these send a strong signal of policy responsiveness and will accelerate market confidence heading into the new quarter.”

Saurabh Saharan, Group MD, HCBS Developments, said, “The timing of the cement GST cut to 18 percent and other materials like sand, lime, and bricks to 5 percent couldn’t be better; it lands during the festive season when families are ready to invest in homes. By lowering one of the highest construction costs, the government has effectively increased buyers’ purchasing power. With developers able to hold prices steady or pass on benefits, buyers now get more value for their money. This strengthens their ability to act decisively, turning festive optimism into transactions."