By Varun Singh | SquareFeatIndia
The Central Government’s recent decision to slash GST on cement from 28% to 18% has been hailed as a historic move. For developers, it translates into a 3–5% reduction in construction costs. On paper, this sounds like a big win for the housing sector and for affordability.
But the question that every homebuyer is asking — and should be asking — is simple: Will this benefit really reach them?
Past Lessons: Relief for Builders, Not Buyers
My two decades of reporting on Indian real estate have shown me one consistent pattern — whenever the government provides relief to developers, the benefits rarely trickle down to homebuyers.
Even Maharashtra Chief Minister Devendra Fadnavis highlighted this at a recent event with developers in Mumbai. He openly said that whenever builders came to him seeking reduction in government premiums and charges, he noticed that instead of home prices reducing, they actually went up. The relief padded builders’ profit margins, but buyers saw no respite.
The Infrastructure Paradox
There’s also the paradox of infrastructure. When new infrastructure is built, logic dictates that real estate prices should become more affordable due to improved supply and connectivity. Yet, the opposite happens in India’s big cities.
Take the example of Mumbai’s Coastal Road. This massive project has transformed accessibility, but instead of stabilising prices, it has fuelled them. In Worli today, homes are being sold at well above ₹2 lakh per sq. ft. Clearly, infrastructure is used as a justification to push prices higher, not lower.
So, Should Homebuyers Be Hopeful?
Frankly, I’m not optimistic. The GST reduction is significant, but if history is any guide, developers are far more likely to pocket the cost savings rather than pass them on. Homebuyers in India are fragmented, lacking the collective bargaining power that developers wield through their associations.
However, there is one step buyers can take. If you have recently booked in a project, organise collectively and ask your builder: If your construction costs are reducing by 3%, why can’t you pass on at least 1–2% of this benefit to us? It is only fair that the fruits of a government decision intended to support affordability also reach the people it was meant to help.
Conclusion
The government’s GST reform on cement is a bold and positive move. But unless developers show willingness to share the relief, homebuyers may once again be left out of the equation.
As someone who has reported on this sector for 20 years, my view is clear: until buyers demand accountability, the cycle will not change. Builders will continue to prioritise profit over affordability.
The question is — this time, will homebuyers raise their voice?
