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The real estate sector has welcomed the GST Council's recent reforms, describing them as a landmark step that reduces construction costs, eases compliance, and supports housing affordability. Developers and industry leaders believe the reduction in tax on key construction materials such as cement, marble and granite will strengthen project economics, enable competitive pricing, and stimulate demand ahead of the festive season. With interest rates stabilising, the reforms are also expected to encourage new project launches, attract investments, and create fresh employment opportunities across housing and allied industries.
The 56th meeting of the Goods and Services Tax (GST) Council approved a series of rate rationalisations aimed at lowering the tax burden on essential construction materials, with cement now taxed at 18% instead of 28%, and granite and marble blocks at 5% rather than 12%. Real estate developers and industry stakeholders described the move as a turning point for the sector, offering relief to both buyers and builders. Advertisement
Kamal Khetan, Chairman and Managing Director of Sunteck Realty Ltd., observed that the reduction directly lowers the cost of construction and allows developers to maintain price stability while improving affordability for homebuyers. He noted that healthier project economics would also encourage greater investment in urban infrastructure.
According to Ankur Jalan, CEO of Golden Growth Fund, the rate rationalisation will not only benefit real estate but also stimulate demand across other sectors such as infrastructure, automobiles, healthcare and education, thereby strengthening India's overall economic activity.
Industry voices agreed that the reforms were particularly timely in view of the upcoming festive season. Bengaluru-based developer Umesh Gowda, Chairman of Sanjeevini Group, said that the combination of GST cuts and softening interest rates could revive consumption demand, enabling developers to pass on benefits to homebuyers after a slow first half of the year.
The impact on affordable housing was highlighted by Vijay Harsh Jha, CEO of VS Realtors, who pointed out that developers had refrained from launching projects due to high input costs. He noted that reduced GST on cement and other materials would revive supply and support infrastructure growth.
Several industry leaders emphasised that the decision comes at a critical juncture for the Indian economy. Harsh Jagwani, Managing Director of Notandas Realty, remarked that the reforms would bring significant relief, especially at a time of global uncertainties such as US tariffs. Similarly, PropEquity CEO Samir Jasuja described the reforms as a move that would reduce compliance, ease business operations, and improve household affordability, particularly when paired with falling home loan rates.
Developers such as Karishmah Siingh of Sattva Group stressed that direct savings of INR 12-15 per sq ft on construction would allow builders to offer more competitive pricing, making homeownership a realistic aspiration. Ashish Kukreja of Homesfy.in added that the two-slab GST structure represented not just an incremental reform but a structural reset for Indian real estate, offering clarity on taxation and instilling confidence among investors.
Further endorsement came from Umiya Buildcon's Chairman, Aniruddha Mehta, who said that simplified tax slabs on key inputs would improve project viability and cash flow, especially in affordable and mid-income housing. Mt. K Kapital's Binitha Dalal and Omaxe's Managing Director Mohit Goel both agreed that the reforms marked a progressive step towards more sustainable development, supporting growth in tier-2 cities as well.
Developers in regional markets also echoed optimism. Manglam Group's Amrita Gupta noted that softer input costs would sustain confidence in lifestyle-focused housing, while Axis Ecorp's Aditya Kushwaha said that reduced costs would encourage thoughtfully planned projects, particularly in second-home destinations such as Goa.
Developers see the reforms as an opportunity to improve affordability, stimulate housing demand, and boost investor confidence. With festive sentiment, stable interest rates and falling input costs aligning, the sector anticipates stronger sales momentum in the months ahead. By lowering compliance burdens and simplifying taxation, GST 2.0 is expected to provide a foundation for more sustainable growth in India's housing and infrastructure markets.
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