The government’s decision to reduce GST rates on cement from 28% to 18% and on key construction materials like sand and bricks from 12% to 5% 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 and commercial developments. Coupled with recent interest rate cuts, this reform is expected to enhance consumer confidence and stimulate festive-season demand.
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 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% to 18%) and other construction materials like sand and bricks (from 12% to 5%), 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% to 18% 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% to 18% 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% to 18% 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 affordability. With festive sentiment building, homebuyers could save lakhs depending on the ticket size, while developers gain more flexibility in pricing.”
Sandeep Chhillar, Founder & Chairman, Landmark Group, said, “The real estate market stands to benefit from the recent GST simplification, and the relief will surely reach buyers. Developers will certainly see healthier margins from lower input taxes. They now have greater room to maintain world-class standards at more competitive costs. With the festive season ahead, when the demand is at its peak, we see this as a chance to convert tax reform into consumer confidence. This balanced benefit across segments makes the reform highly impactful for the sector’s growth story.”
Salil Kumar, Director – Marketing & Business Management, CRC Group, said, “Reducing GST on construction materials is a reform that resonates with both domestic and global stakeholders. For developers, it lowers input costs; for buyers, it signals affordability; and for investors, it demonstrates policy stability and responsiveness. Commercial assets like offices, malls, and hospitality will see improved viability, while residential projects become more competitive in pricing. This balance strengthens India’s attractiveness as a safe, high-growth real estate market, building confidence across the board, from local communities to global capital providers.”
Sanjay Sharma, Director, SKA Group, said, “The GST rate cut on cement and construction materials is a welcome move that will ease project costs and enable developers to pass on benefits to buyers. This will strengthen homebuyers’ purchasing power, improve affordability, and boost demand across housing segments, especially in the festive season.”
Rajjath Goel, MD, MRG Group said, “ The new two-slab GST will simplify compliance, lower costs for consumers, and boost festive demand—helping us drive stronger sales from Diwali onwards. Rationalisation will also bring transparency, ease of doing business, and renewed confidence among homebuyers. This reform is a win-win for both businesses and the common man, setting the stage for sustained growth in the real estate sector.”
Ashok Singh Jaunapuria, MD & CEO, SS Group, said, “The move towards a simplified two-slab GST regime can be a structural game-changer for the real estate sector. By easing tax complexities and reducing the overall burden on critical inputs, it not only makes housing more affordable for end-users but also strengthens developer confidence to launch new projects. On the commercial side, rationalisation lowers operational costs, which can accelerate the pace of Grade-A office, retail, and hospitality developments. Importantly, this clarity will help both domestic and global investors view Indian real estate as a more transparent and resilient asset class, fuelling long-term sustainable growth.”
Prateek Tiwari, MD, Prateek Group, said, “The timing of the GST cut on cement couldn’t have been more strategic. Festivals in India are associated with optimism and new beginnings, and homebuying is a natural extension of that sentiment. By reducing one of the heaviest tax burdens on construction, the government has created space for developers to sweeten deals, hold prices steady, or offer more flexible plans. For the sector, this is not just cost relief—it’s demand acceleration. We expect this festive season to reflect a clear surge in site visits and bookings.”
Yash Miglani, MD, Migsun Group, said that by reducing GST on construction materials, the government has provided significant relief to both homebuyers and developers. Cutting tax on cement from 28% to 18% and on works like tiles, bricks, and stone fittings from 12% to 5% is a visionary decision. This will lower the cost of housing projects, speed up delivery, and make home buying easier for common people. At the same time, this move will also strengthen infrastructure development and create a positive environment across the real estate sector.
Ishaan Singh, Director, AIPL says “The proposed two-slab GST structure can ease project costs by rationalizing rates on construction materials like cement, steel, or paint that heavily influence both housing and commercial projects. For homebuyers, that could mean a reduction in effective prices, especially in the first-time buyer segment. In commercial real estate, lower input costs improve project viability, making assets more attractive for occupiers and investors. Developers are likely to pass relief through, boosting confidence and festive-season demand.”
Dr. Vishesh Rawat, Vice President and Head of Marketing, Sales, and CRM at M2K Group, said, “The reduction of GST on cement is a welcome relief for the housing sector, given its substantial share in construction costs. By easing project expenses, this reform directly translates into cost savings for buyers, especially those considering under-construction properties. The timing during the festive season adds further momentum, strengthening sentiment and encouraging more families to invest in homeownership.”
Shaurya Garg, MD, North Wind Estates, said, “The government’s decision to rationalise GST on cement, sand, bricks, and other inputs will act as a strong catalyst for the real estate industry. Lowering construction costs will encourage developers to deliver projects at more competitive prices, benefitting homebuyers directly. Additionally, the wider reduction in GST across goods will stimulate consumption and economic activity, which in turn will create a more vibrant environment for real estate growth.”
Umang Jindal, CEO, Homeland, said, “The GST reduction on cement from 28% to 18%, announced at a crucial festive juncture, is set to energise the housing market by reducing costs for developers and creating renewed optimism among buyers. By easing the tax burden on one of the most essential construction materials, affordability improves, particularly for first-time buyers and the affordable housing segment. With interest rates stable and sentiment already positive, this reform acts as a catalyst for fence-sitters, giving them the confidence to move forward with their homebuying decisions during this festive season.”
Gurpal Singh Chawla, MD, TREVOC Group, said, “The reduction of GST rates on key construction materials is a timely and progressive decision that will benefit all stakeholders in the real estate ecosystem. This move enhances the sector’s overall competitiveness and is poised to give a strong boost to real estate growth. At a macro level, it aligns with the government’s push for infrastructure-led development, further strengthening demand and investor confidence across the sector.”
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% to 18% 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 sectoral growth.
Mohit Batra, Regional Director, Realistic Realtors, said, “The government’s decision to cut GST on cement from 28% to 18% 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% and other materials like sand, lime, and bricks to 5% 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.”
Ankit Kansal, MD, 360 Realtors, said, “Cement comprises 10-15% of the overall housing construction cost. Consequently, reduction of GST rate from 28% to 18% 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 demand is already gaining strength.”
Sakshee Katiyal, Chairperson, Home & Soul, said, “By reducing the GST on cement from 28% to 18%, 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.”
Udit Jain, Director, ONE Group, said, “For homebuyers, every rupee counts, and the GST cut on cement brings real relief. Lowering input taxes directly softens construction costs, which means developers have more headroom to keep entry-level housing within reach. At a time when rising prices often push buyers into delay, this step can be the trigger that converts aspiration into action.”
Ashwani Kumar, Pyramid Infratech, said, “Reducing GST on key construction materials is likely to highly benefit the real estate and infrastructure sector. Lowering down the GST rate of 28% to 18% on cement will make a substantial difference in the project cost for the developer community hence enabling them to pass on the benefits to homebuyers. The announcement, coming at a time of the festive season, infuses positive sentiments in the market as it’s a strategic reform that will enhance homebuyers’ affordability while empowering developers to deliver projects more sustainably and profitably.”
Sunny Katyal, Co-Founder, Investors Clinic, said, “Reduction in GST rate on construction materials such as cement, sand, and bricks, while on the one hand will propel real estate growth, it will also provide momentum to infrastructural development. Moreover, the reduction in GST on most goods will also have a multiplier effect and boost economic growth, which in turn will also benefit the real estate sector.”
Harvinder Singh Sikka, Chairman, Sikka Group, said, “This decision by the government has brought relief not only to the real estate sector but to the entire construction industry. Reducing GST on cement from 28% to 18% and on basic materials like bricks and sand from 12% to 5% will lower project costs and make timely delivery easier. Coming during the festive season, this move will strengthen homebuyers’ confidence and infuse fresh energy into the market. At the same time, faster infrastructure growth will generate more employment opportunities, directly benefiting the economy.”
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% to 18% 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 markets.”
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% to 18% 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.”
