The real estate industry is all excited about the new GST regime. Some say this will quadruple growth and will be a game-changer. While some claim this to be a catalyst for sustainable infrastructure development and resonates with India’s aspirations. Here are some of the reactions business leaders and policymakers shared with Thought Habitat.
Ashish Kukreja, CEO and Founder of Homesfy.in and mymagnet.io
GST 2.0 is not just an incremental reform but a structural reset for Indian real estate. The shift to a broad two-slab structure of 5% and 18%, along with a 40% demerit rate, signals the government’s intent to simplify and strengthen an eight-year-old tax regime. For our sector, the rationalisation of rates on key construction materials like cement and steel from 28% to 18%, and granite blocks and sand-lime bricks from 12% to 5%, directly translates into lower project costs and more affordable homes.
Real estate already employs over 7 crore Indians, making it the country’s second-largest employer. These reforms will encourage developers to launch more projects, creating new jobs and improving buyer sentiment. Importantly, a simpler, more transparent GST framework can help resolve long-standing challenges around input tax credits and compliance, while also attracting institutional capital into emerging segments such as affordable housing, co-living, and rental housing.
There will naturally be transitional issues in adapting to the new framework, but the overall direction is positive. GST 2.0 gives buyers affordability, developers confidence, and the sector a foundation of trust, and that combination is vital for the next phase of growth in Indian housing.
Aniruddha Mehta, Chairman & Managing Director, Umiya Buildcon Ltd.
The rationalisation of GST under the proposed reforms marks a landmark moment for the real estate and construction industry. Simplifying tax slabs on key inputs like cement, steel, and paints will reduce pricing inefficiencies, improve procurement processes, and ease cash flow challenges — all of which are crucial for sustainable project execution. Even a modest reduction in input costs can significantly enhance project viability and timelines, particularly in affordable and mid-income housing where pricing sensitivity is high.
Beyond cost savings, GST 2.0 has the potential to catalyse growth and job creation across the broader ecosystem. As one of the country’s largest employment generators, real estate stands to benefit from improved liquidity and reinvestment opportunities, leading to more jobs in construction, allied industries, and services.
Moreover, a simplified and transparent tax regime instills greater confidence among both homebuyers and long-term investors. It can drive capital inflows, support sustainable building practices, and ultimately contribute to India’s housing and infrastructure goals. That said, clarity on transitional provisions and tax credit flow will be essential to ensure a smooth shift and protect near-term working capital cycles.
Payas Agarwal, Director, Great Value Realty
The GST rate cut on cement is a game-changer for the real estate sector. With input costs forming nearly half of total project expenses, this move directly improves housing affordability and unlocks fresh demand. It’s a timely reform that empowers developers to pass on savings to homebuyers, while accelerating India’s broader vision of infrastructure-led growth. The GST slab revision on renewable energy equipment is a strategic catalyst for sustainable infrastructure and green building adoption. It is an enabler for developers to fast-track holistic, wellbeing-focused living spaces. This creates a stronger, more transparent value chain benefiting both developers and buyers. We welcome this timely reform and remain committed to building high-quality homes and communities that resonate with India’s evolving aspirations and deliver greater value to every family.
Manish Jain, President, CREDAI Pune
At CREDAI Pune, we have long advocated for the reduction of the 28% GST on cement, which constitutes around a large portion of construction costs. After years of persistent efforts, we appreciate the Government’s decision to lower it to 18%, which should reduce input costs by approximately 2-3%, provided the cement and RMC companies pass on this benefit to us, immediately to the sector. This relief is especially critical given that material costs have surged 40-50% since COVID-19, severely impacting project feasibility.
The 56th GST Council’s reforms mark a pivotal advancement for real estate. Beyond cement, reduced GST rates on granite, marble, bricks, wood products, and renewable energy devices will support affordability and sustainability across luxury and affordable housing. The reduction of GST on these products from 12–18% will put more money in the hands of buyers and help them fulfil their dream of affordable housing in Pune. Coupled with lower interest rates, this move will further boost growth in the real estate sector. The operationalization of the GST Appellate Tribunal and expedited refunds will enhance liquidity, enable faster dispute resolution and provide greater certainty for developers.
These measures offer a forward-looking framework that promotes transparency, cost-efficiency and ultimately benefits homebuyers with more competitive pricing. CREDAI Pune applauds this decisive step toward a more robust, growth-oriented and sustainable real estate sector. This balanced reform aligns with the industry’s call for relief amid rising costs and paves the way for renewed confidence and market stability in Pune and beyond.
S K Sayal, MD & CEO, Bharti Real Estate
The government’s decision to decrease GST rates is a timely intervention for the real estate sector. Developers will be able to more effectively manage construction costs and provide greater stability for project execution as a result of the reduction in the tax burden on critical inputs, such as cement, from 28% to 18%. The reform will further encourage investment and enable us to deliver world-class infrastructure at a more competitive value for large business ecosystems such as our marquee development, Worldmark, which aims to contribute 17 million sq ft of exceptional commercial real estate to the country. It is crucial to note that this decision will bolster market confidence, stimulate demand in both commercial and premium housing segments, and contribute to the sustained development of the NCR real estate ecosystem.
D Kishore Reddy, CMD, Mana Projects
The reduction of GST on cement from 28% to 18% is a positive development for the real estate sector, with far-reaching implications for market growth and investor confidence. By lowering one of the key input costs, the reform strengthens project feasibility and supports faster execution across mid- and affordable housing segments, making homeownership more accessible to a wider audience.
In addition to enhancing affordability, the adjustment also provides developers with greater flexibility to invest in quality and premium features, benefiting luxury projects as well. Beyond immediate cost savings, this initiative underscores a broader commitment to simplifying taxation, improving transparency, and stimulating economic activity. The GST reduction is expected to create a more efficient, resilient, and dynamic real estate ecosystem, fostering sustainable growth across all market segments.
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.
Samyak Jain, Director, Siddha Group
The GST Council’s latest rationalisation is not just India’s biggest tax overhaul since 2017—it is a reform with far-reaching impact on housing and construction. By reducing slabs to a simpler two-tier structure and eliminating ambiguity on rates, the Council has created a transparent, efficient system that will help both consumers and businesses. For households, lower GST on essentials and FMCG products will free up disposable income, directly boosting confidence to invest in big-ticket purchases like homes.
For the housing and construction sector, the benefits are both direct and significant. With key input materials such as paints, tiles, electricals, fittings, and other consumer durables moving from the 28% slab to 18%, the overall cost of construction is set to ease. This reform comes at an opportune time, as urban centres like Mumbai are already witnessing robust demand, powered by infrastructure upgrades, rising employment opportunities, and a shift towards aspirational housing.
The reforms also align with a strategically important period, coinciding with Navratri and the festive season, which has historically been a good period for property sales. Moreover, the broader monetary environment is supportive. Given current conditions, RBI is likely to hold rates in September, choosing to weigh the full effects of previous easing. Together with GST rationalisation, these factors will enhance affordability, strengthen buyer confidence, and support sustained growth in India’s housing market.
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