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

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.

Experts highlight that the simplified two-slab GST regime not only eases compliance but also strengthens India’s position as a transparent and resilient real estate market, potentially driving long-term property growth and renewed investor interest.

Manoj Gaur, CMD, Gaurs Group, said that we welcome the government's decision to fulfil real estate developers' demand to reduce GST rates on cement (from 28 percent to 18 percent) and other construction materials like sand and bricks (from 12 percent to 5 percent), among others. Coming at a time when the country prepares for the festive season, it augurs well for the sector and boosts demand. Coupled with the reduction in the repo rate, it will add to the affordability of real estate purchases.

Amit Modi, Director, County Group, said, “The GST cut on cement from 28 percent to 18 percent is a direct relief for residential real estate. Cement alone makes up nearly a third of construction costs, so this move could trim overall project expenses. For homebuyers, that translates into tangible savings of lakhs on under-construction homes. With the festive season underway, this announcement is perfectly timed to boost sentiment, nudging fence-sitters to commit. Beyond affordability, it also gives developers more room to maintain quality while keeping prices in check.”

Sahil Agarwal, CEO, Nimbus Realty, said, "Bringing GST on cement down from 28 percent to 18 percent is a meaningful relief for residential projects, where cement is a major cost component. The cut will ease overall construction expenses and allow developers to pass benefits directly to buyers. For homeowners, this means substantial savings on under-construction properties, while for developers, it ensures better cost control without compromising on quality. Coming during the festive season, the move will also encourage many buyers to finally take the plunge."

Dr. Gautam Kanodia, Founder, KREEVA and Kanodia Group, said, “With the new GST regime, the government has tackled one of the highest-cost inputs in construction. In real estate, since materials carry varying GST rates that directly shape project costs, reducing cement from 28 percent to 18 percent alone eases expenses by several percentage points. This, in turn, could soften property prices for buyers. For under-construction projects, this makes a direct impact on mid-segment home affordability. With festive sentiment building, homebuyers could save lakhs depending on the ticket size, while developers gain more flexibility in pricing.”