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

Aman Sharma, Managing Director and Founder of Aarize Group, said: The GST Council’s move to slash tax rates on cement and other  construction materials is a landmark step for the sector. Cement alone contributes nearly one-third of overall construction costs, and its rate reduction from 28 percent to 18 percent will directly enhance cost efficiency for developers. This will not only accelerate project timelines but also allow developers to channel savings into quality enhancements and sustainable building practices. Importantly, it improves housing affordability for end-users and boosts investor confidence in the long run. Such policy measures provide the necessary impetus for long-term growth in both residential and commercial real estate markets.”

Manish Jaiswal, CEO, Eldeco Group said, “We welcome the GST Council’s decision to reduce the tax on cement from 28 percent to 18 percent, alongside sharp cuts on marble, granite, sand-lime bricks, and inlays. As cement constitutes a large portion of construction budgets, this reprieve stands to ease both developer pressures and buyer costs. In our field projects today, we estimate construction savings of around 5 percent, which—if passed through—could significantly improve affordability and margin comfort across mid-income and premium housing products. This reform could be a timely catalyst—offering a festive boost to real estate demand and confidence.

Santosh Agarwal, CFO & Executive Director, Alpha Corp Development Limited, said  “The rationalisation of GST slabs represents an important step toward simplifying India’s tax framework and enhancing transparency in the real estate sector. By potentially reducing the tax burden on housing, this reform is expected to strengthen buyer confidence, encouraging more informed and faster decisions. For developers, a predictable and streamlined GST structure could reduce transaction complexities and enable smoother project execution. This reform will provide fresh momentum to the real estate sector, supporting sustained growth and reinforcing India’s position as a dynamic housing market.”  

Subhashendra Kumar, CFO, Trehan Iris, said, "We welcome the move towards a simplified two-slab GST structure of 5 percent and 18 percent, which marks a progressive step for the sector. The rationalisation of taxation is expected to lower overall project costs, enabling developers to offer more competitive pricing to homebuyers. At the same time, it will bring greater transparency and streamline compliance, thereby improving operational efficiency. Such policy clarity is likely to reinforce buyer confidence, stimulate demand across the housing market, and lay the foundation for sustained long-term growth for both homebuyers and the real estate industry.”

Yateesh Wahaal, Director, M3M India, said: The GST rationalisation on cement, steel, and other core construction materials is a welcome and progressive step for the real estate sector. It signals the government’s commitment to supporting infrastructure growth and easing cost pressures in a high-input industry. While the overall impact will unfold over time across various asset classes, this move undoubtedly contributes to a more sustainable and cost-efficient development environment. At M3M India, we are closely evaluating the implications, and remain focused on delivering quality and value across all our projects.