As Dussehra draws near, home seekers have brighter smiles and greater expectations for booking their dream home this year. The peak festive season phase is all set to offer them a sweeter deal thanks to some
of the decisions taken at the 56th meeting of the GST Council held on September 3, 2025. Let’s examine some of the benefits we can look forward to, as shared by real estate analysts and association heads.
Dr. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL, explaining the significance of the announcement, said, “In India, developers do not get the full benefit of Input Tax Credit (ITC) in real estate and hence the high GST rate on cement, currently at 28%, adds to the final apartment cost. The government’s decision to bring down the GST rate to 18% is a welcome move. The impact of this reduction in rate will vary across different segments of the real estate market.”
According to him, the residential segment being a strong driver of Indian real estate, understanding of the impact on home price is important. “From our ground level data pertaining to live projects, we believe the reduction of home price may range between 1-1.5%, considering various types of residential projects and effective cement cost reduction considering the cascading and base price adjustments. This is with the assumption that developers would transmit the entire benefit to the customer.”
Dr Niranjan Hiranandani, Chairman, Hiranandani and NAREDCO National, opined, “The GST rationalization is a festive bonanza for Indian consumers and a strategic boost for the economy. 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 home buyers, making homes more accessible while supporting the government’s Housing for All vision. This rationalization is not just a boost for developers—it is a win-win for consumers, the housing sector, and India’s long-term growth story.”
G Hari Babu, National President of NAREDCO, emphasised, “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 home buyers. Announced during the festive season, it will lift consumer sentiment and create fresh demand. This is a win-win for consumers, the real estate sector, and the nation’s growth story.”
Vikas Jain, President, NAREDCO Maharashtra NextGen, said, “Simplifying tax slabs also brings much-needed clarity and predictability—essential for innovation in design, sustainable developments, and faster deliveries. If suppliers pass on these savings, home buyers stand to benefit considerably.”
The stage is set for a fabulous 2025 festive season with hopes of concrete expectations coming true.
