New Delhi, Sep 4 (UNI) The real estate market is buzzing with fresh optimism as the Goods and Services Tax (GST) Council’s latest rate cuts promise to make homes more affordable and projects more viable.
The 56th meeting of the GST council cut the GST on cement from 28 per cent to 18 per cent. This move is expected to bring down construction costs, improve housing affordability, and give a push to the infrastructure sector.
The Council has also approved a reduction of GST rates from 12 pc to 5 pc on labour-intensive goods such as handicrafts, marble, travertine and granite blocks.
Sharing the real estate perspective, Sammeer Pakvasa, Managing Director and CEO, Eleganz Interiors, said, “ The GST rationalisation is a forward-looking reform that will have a positive multiplier effect across industries. This is critical for sectors like real estate, interior, and design, where consumer sentiments play a vital role in driving investments.”
“ With improved affordability and greater liquidity in the hands of households, we expect demand to strengthen not just in travel and lifestyle but also in housing and workspaces — areas where people are increasingly willing to invest in quality and sustainability,” Pakvasa added.
With the help of key rate changes, under-construction properties and construction materials will attract lower taxes, directly translating into price relief.
Akshay Taneja, Managing Director, TDI Infrastructure, said, “ The Next-Generation GST reforms mark a leap forward in an inclusive, efficiency-driven real estate ecosystem. Rationalising GST to two slabs, 5 pc and 18 pc effective from September 22, removes complexity and reduces costs, especially on core materials like cement, which has dropped from 28 pc to 18 pc, translating into savings of nearly Rs 30 per bag.”
“ This reduction will lower construction costs, encourage new investments, and catalyse job creation, especially significant for India’s youthful workforce,” Taneja added.
Affordable housing has emerged as the biggest beneficiary, with the reduced GST making it easier for first-time buyers to own entry-level homes.
