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

Ankit Kansal, MD, 360 Realtors, said, "Cement comprises 10-15 percent of the overall housing construction cost. Consequently, reduction of GST rate from 28 percent to 18 percent can be an emboldened step for Indian real estate development. This will reduce the input cost significantly, thereby lowering construction cost. This can be transferred to end-users making the housing sector more affordable. The biggest beneficiary will be the affordable homes sector, while mid-income and higher-income homes will also get a buying boost. The revised GST rates of cement can give a huge push to India’s growing affordable sector. Moreover, the timing is also apt as it is the festive season. Reduced GST rates will further renew the positive sentiments in the housing industry."

Bhupindra Singh, COO, RISE Infraventures, says, “The exciting part about the GST cut is not just the lower tax outgo, but the certainty it delivers to the real estate sector. In housing, reduced levies on key inputs like cement immediately narrow the gap between buyer affordability and pricing, particularly in the affordable and mid-income segments. On the commercial side, especially in office and retail, rationalised costs enhance project viability and improve investor confidence. Together, these shifts make both housing and commercial assets more compelling, reinforcing momentum across India’s real estate spectrum at a time when festive-driven home demand is already gaining strength.”

Sakshee Katiyal, Chairperson, Home & Soul, said, "By reducing the GST on cement from 28 percent to 18 percent, the government has directly increased homebuyers’ purchasing power. Cement is a critical cost driver, and this reduction allows developers to contain prices, especially for under-construction projects. For buyers, this gives them more room to stretch budgets or upgrade choices. In effect, the reform doesn’t just lower costs; it enhances affordability, enabling families to move from aspiration to action in their homebuying journey."

Sunil Goel, MD, Numax Realcon and Co-Founder of Omaxe Limited, said, "Reducing GST on cement is more than a financial relief—it’s a trust-building measure. Buyers often wonder if policy reforms actually reach them. By lowering one of the heaviest-taxed inputs, the government has ensured tangible benefits flow into pricing, particularly for under-construction projects. If developers pass this on transparently, it strengthens credibility and long-term buyer confidence."