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

Manit Sethi, Director, Excentia Infra, said, “The recent GST regime is a structural win for the real estate sector, with the housing segment availing the benefits. Cutting GST on cement from 28 percent to 18 percent will lower input costs, making property more affordable. This would renew buyers’ interest, especially in emerging tier-2 markets, where demand for homes is quietly strengthening. By lowering the tax burden on key construction materials, developers will be able to pass on savings to homebuyers, creating momentum in emerging market buying interest.”

Kushagra Ansal, Director, Ansal Housing, said, “The reduction in GST rates on construction materials will infuse new energy into the entire sector. With the cost of essential materials like cement and tiles coming down, project financing and delivery will become easier. Homebuyers will be able to purchase houses at more affordable prices, and developers will also be able to complete projects on time. This is a step that will prove highly beneficial for both the industry and consumers.”

Ajay Tyagi, CSO, Betterchoice Realtors Pvt Ltd, said, "The GST cut on cement from 28 percent to 18 percent is a direct shot in the arm for home affordability. For under-construction homes, buyers could see lakhs in savings depending on the ticket size. At a time when affordability is being challenged by rising land and compliance costs, this step ensures developers can hold prices stable. It gives families confidence to take the plunge into homeownership, making the dream of a first home more achievable during this festive season.”

Sorab Agarwal, Executive Director at ACE said, "The GST Council’s decision to revise tax rates is a progressive move for the economy at large. For the construction and infrastructure space, the reduction in GST on key building materials is expected to significantly ease input costs, accelerate project execution, and provide much-needed momentum to the sector. This will not only improve affordability for end-users but also stimulate investments and create stronger linkages across allied industries.

Separately, the reduction of GST on agricultural equipment from 12 percent to 5 percent is a landmark decision that will directly benefit farmers and the rural economy. At ACE, we believe that this move encourages us to focus more on the sector mechanisation and enable higher productivity in agriculture. It is well aligned with the government’s vision of doubling farmers’ income and fostering rural prosperity.

Together, these measures will unlock growth across urban and rural sectors, boost economic activity, and strengthen India’s journey towards becoming a more resilient and inclusive economy."

Nagendra Nath Sinha, MD, Rodic Digital & Advisory, said - “The recent reduction of GST on critical construction materials such as cement and steel from 28 percent to 18 percent is a game-changer for India’s infrastructure sectors. With cement and steel forming nearly 40–45 percent of project costs, this change will cut material tax burden by about 10 percent and help in saving nearly Rs. 10 lakh on every Rs. 1 crore spent. Such savings will make projects more viable, accelerate execution, and boost participation in Public-Private Partnerships. The real estate sector, especially affordable housing, will also benefit as developers pass on cost efficiencies to consumers. Equally important, reduced tax pressure will limit the incentive for informal procurement, strengthening transparency and compliance. Faster refund decisions would also benefit the industry due to improved cash flow and lower interest liability. Furthermore, with simplified tax structures, we can better track investments and reduce reliance on informal procurement channels, enhancing transparency across the sector. We believe this landmark step will accelerate the nation’s infrastructure growth, catalyse real estate momentum, and set new benchmarks for transparency and efficiency. "