The GST rationalisation announced by the government on Wednesday has drawn strong applause from India’s real estate fraternity. With the tax rate on key construction materials like cement and steel reduced from 28% to 18%, industry veterans see this as a landmark reform that will lower project costs, make housing more affordable, and boost economic growth.

Leading voices from NAREDCO and prominent developers hailed the move as timely, progressive, and transformative for both consumers and the real estate sector.

Commenting on the development, G Hari Babu, National President of NAREDCO, said, “The GST rationalisation is a very important step, and we welcome it wholeheartedly. It shows the government’s intent to make GST simpler and more balanced. The Prime Minister’s clear commitment to rationalising GST will boost India’s GDP and strengthen confidence in the economy at a crucial time.”

This move brings special relief to real estate and its allied industries. Lower GST on key materials like cement and steel will directly reduce costs. Projects will become more viable and progress faster.

“Affordable housing will gain the most, as reduced construction costs can be passed on to homebuyers. This will make homes more accessible and push forward the government’s Housing for All vision. The entire value chain of housing and infrastructure will benefit from this reform,” he said, adding that the timing of this decision is equally significant. “Announced during the festive season, it will lift consumer sentiment and create fresh demand. It will act as a strong booster for the economy, support homebuyers, and encourage developers. This is a win-win for consumers, the real estate sector, and the nation’s growth story. We see this as a progressive step that will create long-term momentum for India’s economy,” he added.

Anuj Puri, Chairman, ANAROCK Group, said, “Reduced GST on construction materials like cement can reduce construction costs by as much as 3-5%. Developers, especially those engages in creating affordable housing, will get major relief in terms of cash flows and margins. The simplified GST structure does away with the old five-slab system and now has only two primary slabs of 5% and 18%, in addition to a 40% rate on luxury and so-called ‘sin goods’.”

The resultant pricing clarity will go a long way in improving overall consumer confidence. The GST rationalization will bring down logistics costs and help streamline supply chains, benefiting retail real estate operations. However, retail properties used for commercial purposes will continue to attract 18% GST on rental income.

“The reforms are especially positive news for affordable housing. India currently has a shortfall of nearly 1 crore budget homes in urban markets, and this number could rise to 2.5 crore by 2030 without focused interventions. These GST reforms bring lower construction costs and improved ease of compliance, which can go a long way towards reversing this trend making homeownership more accessible to middle-class families,” Puri added.

Here we are taking a look at what the industry leaders said:

Dr Niranjan Hiranandani, Chairman, Hiranandani and NAREDCO National: “The GST rationalisation is a festive bonanza for Indian consumers and a strategic boost for the economy. By enhancing purchasing power, stimulating consumption, and helping contain inflation, this reform creates a multiplier effect that will propel India’s GDP growth beyond 8%. At a time of global uncertainty, such fiscal stimulation underscores the resilience of our domestic economy and strengthens confidence in India’s growth trajectory. Industry and consumers alike stand to benefit from this progressive step.”

“For the real estate and infrastructure sectors, the reduction of GST on critical construction materials like cement and steel from 28% to 18% is a landmark reform. This will significantly ease input costs, improve project viability, and accelerate infrastructure development across the country. Affordable housing, in particular, stands to gain as reduced construction costs can be passed on to homebuyers, making homes more accessible while supporting the government’s Housing for All vision. This rationalisation is not just a boost for developers—it is a win-win for consumers, the housing sector, and India’s long-term growth story.”

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE: “The reduction of GST rates on cement and construction materials is a decisive step that provides much-needed relief to the real estate sector. With cement, steel, and other inputs typically accounting for nearly 40–45% of total construction costs, this reduction will meaningfully lower project expenses. Developers can now pass on part of these savings to homebuyers, improving affordability and stimulating demand across segments. This timely reform comes as a festive season boost, creating the right conditions to spur homebuyer sentiment and drive purchase decisions. This step will also accelerate the government’s larger vision of housing growth and infrastructure-led economic development.”

Samir Jasuja, Founder & CEO, PropEquity: “The rationalisation of GST rates by the government is a welcome move towards reducing compliance and thereby ease of doing business in the country. The reduction in rates across a host of items will give a spur to consumption, savings and investment by households, in turn enabling them to reduce their EMI burdens. This coupled with falling home loan rates will bring the much-needed cheer in the upcoming festive season and beyond. The overall impact of this move will translate into higher GST collections, more government spending and higher economic growth.”

Vimal Nadar, Senior Director & Head of Research, Colliers India: “The newly announced two-slab GST structure of 5% and 18% is a progressive move to rationalize the prevailing inverted duty structure, improvise classification, simplify approvals & processing refunds. These measures will surely cut costs at different tiers while enhancing the ease of doing business and driving consumption. Within real estate, the slashing of GST on cement will play a critical role in rehauling project cost structures as cement forms a major value component in the overall cost of construction. Residential real estate, particularly new homebuyers, stand to gain as developers are likely to pass on the benefit of lower costs in the form of reduced housing prices. Developers’ profitability margins, too can potentially improve, enhancing the overall financial health of the real estate sector. The timing of this rollout is appropriate, with the festive season in the offing and the real estate sector is already reaping the benefits of favourable interest rates.”

Piyush Bothra, Co-Founder and CFO, Square Yards: “The latest GST restructuring comes as a major boost for the real estate sector. With the reduction in costs of key construction materials such as cement and steel, input expenses for developers are expected to ease, making projects more viable. The move towards a simplified two-slab structure will also streamline compliance, making processes smoother and faster. For the residential segment, this is likely to translate into tangible benefits for homebuyers as developers pass on the savings over the coming months. While the impact may take some time to reflect, it could provide much-needed relief in the backdrop of rising property prices and add to overall affordability. Coupled with the optimism of the upcoming festive season, these reforms are well placed to drive stronger demand in the property market.”

Shrinivas Rao, FRICS, CEO, Vestian: “The recent reduction in GST rates is poised to strengthen the real estate sector by reshaping demand–supply dynamics. Lower GST on construction materials is expected to enhance housing affordability by reducing input costs, while reduced GST on other goods could improve disposable income, thereby stimulating real estate demand. However, the overall impact may remain limited if these savings are not adequately passed on to end-consumers.”

Avneesh Sood, Director, Eros Group: “The GST Council’s move to reduce the tax rate on cement from 28% to 18% is a landmark reform that will have far-reaching benefits. For the common man, this directly translates into greater affordability in home construction and aligns perfectly with the government’s vision of ease of living. At the same time, developers gain significant relief on input costs, which ensures ease of doing business and creates healthier project economics. This step will encourage timely delivery, improve margins, and ultimately make housing more accessible, especially in the affordable and mid-income segments where cost sensitivity is highest. Beyond immediate savings, the reform is also set to boost buyer sentiment and sustain housing demand at a critical juncture for the industry. It is a well-calibrated policy decision that supports both consumers and developers, while reinforcing the national mission of ‘Housing for All.’”

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd: “We wholeheartedly welcome the GST Council’s move on rate rationalisation ahead of the festive season. By reducing the tax burden, the move comes as a major relief for the common man. The housing sector, particularly, stands to benefit from GST reduction on input materials like cement from 28% to 18% and granite blocks from 12% to 5%, as this will ultimately reduce home prices for consumers and create sustainable demand across segments. This reform gives a major push to the housing sector making homeownership more accessible for a wider population. The simplified two-tier structure will make compliance easier for real estate developers, increase transparency, and improve the supply of quality homes at competitive prices, ultimately benefiting end-users in the long run.”

Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation: “The GST Council’s decision to approve the implementation of next-generation GST reforms is a crucial step towards simplifying India’s tax structure and boosting economic growth. For real estate, these reforms are particularly significant as they will directly benefit from reduced taxes on raw materials like cement and marble blocks, lowering the cost of constructing homes, ensuring easier compliance for developers, and improving overall affordability for homebuyers.
We anticipate a noticeable jump in the demand for homes in the coming months as these reforms have prepared the ground for developers to offer lucrative deals and attractive pricing just ahead of the festive season. In the long run, these reforms are expected to strengthen buyer confidence, accelerate project delivery, and foster sustainable growth in the housing sector.”

Sumit Agarwal, Director, Ashtech Group: “The GST Council’s decision to rationalize tax rates is a welcome and much-needed reform. Almost all consumer durables and household items have seen a rate reduction, which will directly ease the financial burden on consumers and improve affordability. In particular, the government’s move to reduce GST on cement, marble, and other key inputs will significantly reduce construction costs in both real estate and infrastructure. This is a significant step that is expected to not only ease the burden on developers but also stimulate demand and give a strong boost to the industry as a whole.”

Kamal Khetan, Chairman & Managing Director, Sunteck Realty, Ltd: “The GST cut on cement and other construction materials is a landmark step that directly lowers the cost of construction. This reduction enables developers to maintain price stability and pass on the benefit to homebuyers through improved affordability. It will also support healthier project economics and encourage further investment into housing and urban infrastructure.”

Santosh Agarwal, CFO & Executive Director, Alpha Corp Development Limited: “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.”

Parvinder Singh, CEO, Trident Realty: “The shift to a streamlined GST structure is an impactful reform for India’s real estate sector. With rates on key materials like cement now lower, construction becomes more cost-efficient, giving developers room to build smarter with greater flexibility in pricing. This simplification enhances cost transparency, reduces tax inefficiencies, and offers a more stable environment for long-term planning. For homebuyers, the impact is twofold with greater affordability, and a noticeable uplift in overall value. These savings give us room to do more – invest in smarter layouts, sustainable materials, and the kind of modern conveniences today’s buyers expect. By easing the overall tax load, this reform is expected to make quality housing more accessible while energising demand across key urban markets.”

Yateesh Wahaal, Director, M3M India: “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.”

Subhashendra Kumar, CFO, Trehan Iris: “We welcome the move towards a simplified two-slab GST structure of 5% and 18%, 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.”

Dr. Yogesh Bhatia, MD & CEO of LML Realty: “The GST Council’s decision to reduce GST on critical construction materials like cement from 28 percent to 18 percent marks a significant and timely intervention for the real estate sector. This reduction will substantially ease input costs, enhancing project viability and enabling developers to deliver greater value to end-users. At LML Realty, as we embark on building India’s new industrial addresses, we’re confident this reform will not just underpin the competitiveness of our new industrial park, but also support broader infrastructure growth and housing affordability across the country.”

Karishmah Siingh, President – Sales, Marketing & CRM, Sattva Group: “This GST reduction on cement represents a pivotal reform that fundamentally shifts the affordability equation for Indian homebuyers. With ₹12-15 per square foot in direct savings, builders now have the flexibility to pass on meaningful cost reductions to end consumers, making homeownership a realistic aspiration rather than a distant dream. What’s particularly compelling is how this creates a virtuous cycle as construction costs become more manageable, developers can price their projects more competitively, which in turn encourages fence-sitting buyers to move from aspiration to action. The immediate market enthusiasm reflects a broader confidence that we’re entering a phase where homebuying decisions will be driven by genuine affordability rather than constrained by inflated input costs. This reform essentially removes a major psychological barrier for homebuyers who have been waiting for the right moment to invest in their future.”

Mahendra Nagaraj, Vice President, M5 Mahendra Group: “The GST Council’s move to reduce the tax rate on cement from 28% to 18% is a landmark reform with ripple effects across the construction industry. Cement is one of the largest cost components in any real estate or infrastructure project, and a ~₹30 per bag reduction significantly eases input cost pressures. From the buyer’s perspective, this reform brings meaningful affordability gains. In an environment of rising interest rates and high inflation, this move helps offset financial stress for the end customer.”

Vikas Bhasin, Managing Director, Saya Group: “We welcome the government’s decision on broad GST rate rationalization, which will benefit the public at large. The reduction of GST on cement is also a positive step and will help ease construction costs. However, it is important to note that construction materials account for only about 25–30% of the overall cost of real estate projects, and cement is just one of the many inputs. Therefore, the impact of this move on end prices will be limited. A more meaningful reform would have been a reduction in GST on under-construction properties, as that would have directly and significantly benefited homebuyers. We remain hopeful that the government will consider this important step in the near future.”

Binitha Dalal, Founder & Managing Partner, Mt. K Kapital: “The rate rationalisation by the government is a welcome move and marks the first step towards a series of bold initiatives to strengthen the Indian economy. For upcoming projects, this reform could lead to cost savings of up to 5%, depending on their stage of execution and material requirements. The impact on ongoing projects, however, is likely to be relatively modest. We also believe the government should take additional steps to give a strong boost to affordable housing and reconsider the double indexation of GST on redevelopment and JDAs. Such measures will make housing more accessible and enhance competitiveness. Overall, this decision reflects a progressive approach, and we look forward to more reforms that support growth.”

Mohit Goel, Managing Director, Omaxe Ltd: “The introduction of a two-slab GST structure is a timely reform that we wholeheartedly welcome. By reducing rates on key inputs like cement, granite and marble, the government has eased cost pressures in construction and simplified compliance, improving affordability for homebuyers, especially in the under-construction segment.This reform comes at an important moment with stable interest rates, strong festive sentiment and rising demand for quality housing shaping a positive outlook.”

Amrita Gupta, Director, Manglam Group: “The festive quarter has always been a natural catalyst for homebuying and this year the backdrop is even stronger. The GST Council’s recent cuts, from 12% to 5% on marble and granite blocks and 28% to 18% on key cements, signal softer input costs and help ease pressure on future pricing. For buyers it reinforces confidence that affordability can hold, and for organised players it enables faster procurement and better value creation. In tier-2 markets like Jaipur we have experienced that families demanding lifestyle-focused homes and aligning purchase decisions with auspicious dates. Mid-segment and lifestyle housing remains the clear focus and are drawing the strongest traction. With banks rolling out festive loan schemes, sentiment and structural tailwinds are coming together to keep momentum strong.”

Aditya Kushwaha, CEO and Director Axis Ecorp: “The GST reduction on key construction materials like marble, granite and cement is a timely boost for the sector. Lower input costs will help developers create better-designed, high-quality homes while keeping projects viable. For markets such as Goa, where interest in second homes and holiday villas is accelerating, especially among NRIs, this move supports sustainable growth and makes lifestyle-oriented real estate a more compelling investment story. It also strengthens the long-term case for creating thoughtfully planned holiday homes that balance affordability, premium design and strong rental potential.”

Deep Vadodaria, Managing Director, Nila Spaces Limited: “The recent GST slab rationalization marks a pivotal shift for the real estate sector. Affordable housing is set to gain significantly, as reduced tax outflows will make home ownership more accessible for first-time buyers and middle-income families. More importantly, these changes will also ease the monthly cash flows of Indian households since essentials are now cheaper, and families will save more on their daily necessities. This additional liquidity enables buyers to take on higher risk for long-term assets like homes, directly improving affordability. In effect, demand will be buoyed by two key factors: lower construction input costs and higher disposable incomes. This aligns well with the government’s push toward Housing for All and will stimulate demand in Tier 2 and Tier 3 cities, where affordability is the key driver.”

Saransh Trehan, Managing Director, Trehan Group: “We wholeheartedly welcome the GST Council’s landmark decision to restructure the tax regime by merging the earlier four slabs of 5%, 12%, 18% and 28% into a simplified framework, while also reducing GST on cement and other key building materials from 28% to 18%. This long-awaited relief directly benefits developers by lowering input costs, easing financial pressure, and enabling faster and more efficient execution of projects. Equally important, it benefits homebuyers by reducing the overall cost of housing and allowing developers to pass on the savings in the form of more affordable pricing. The timing of this reform is crucial, as the sector is poised for accelerated growth and such progressive steps will ensure sustained momentum. By addressing one of the biggest cost burdens, this bold move will revive demand, spur new launches, boost homebuyer confidence, and lay the foundation for long-term, sustainable expansion of the real estate sector.”

Neeraj K Mishra, Architect & Founder, One point Design: “The GST Council’s move to rationalize rates by reducing GST on cement and other crucial construction materials is a historic and highly progressive decision. For years, high taxation on these inputs has been a major hurdle for the real estate sector, particularly for affordable and mid-income housing projects. With this reduction, we foresee a substantial decrease in construction costs, which in turn will enable developers to offer more competitive pricing to homebuyers. This will not only revive demand but also encourage faster completion of projects, benefiting both the industry and consumers. We welcome this step wholeheartedly, as it will act as a catalyst in accelerating India’s housing growth story and take us closer to the dream of ‘Housing for All.”

Neeraj K Mishra, Executive Director, Ganga Realty: “The GST Council’s move to rationalize rates by reducing GST on cement and other crucial construction materials is a historic and highly progressive decision. For years, high taxation on these inputs has been a major hurdle for the real estate sector, particularly for affordable and mid-income housing projects. With this reduction, we foresee a substantial decrease in construction costs, which in turn will enable developers to offer more competitive pricing to homebuyers. This will not only revive demand but also encourage faster completion of projects, benefiting both the industry and consumers. We welcome this step wholeheartedly, as it will act as a catalyst in accelerating India’s housing growth story and take us closer to the dream of ‘Housing for All.’”

Ankur Jalan, CEO, Golden Growth Fund (GGF): “The GST rate rationalisation is expected to streamline compliance across industries, enhance operational efficiency, and strengthen tax collections. By stimulating demand in core sectors such as real estate, infrastructure, agriculture, automobiles, healthcare, and education—key pillars of India’s economy—this timely reform is set to boost overall economic activity. It also comes at an opportune moment, paving the way for increased consumption during the upcoming festive season.”

Umesh Gowda H.A, Chairman and Founder, Sanjeevini Group: “The next-gen GST reforms aided by declining interest rates will spur consumption demand, bolster the real estate sector and give a boost to the economy. The upcoming festive season may see developers pass on some benefits to the homebuyers to accelerate sales in view of a weak first half of 2025.”

Vijay Harsh Jha, Founder and CEO of VS Realtors: “The cut in GST rate on cement will provide the much-needed fillip to the affordable housing sector, which off late has seen considerable reduction in supply with developers refraining from launching new project due to rising cost and reduced viability. This move will further accelerate the ongoing infrastructure development providing a broader stimulus to the economy and India’s growth story.”