No change in property tax rates
For homebuyers, the tax burden on property remains the same. Affordable housing continues at 1% GST, under-construction projects at 5%, and completed properties remain exempt. This offers much-needed stability and avoids confusion for buyers planning their purchase.

Construction material becomes cheaper
The big relief is on construction inputs:

• Cement: GST slashed from 28% to 18% (accounts for 25–30% of construction costs).
• Marble, granite, stone bricks: Reduced from 12% to 5%.
• Steel: Remains unchanged at 18%.

These changes are expected to lower overall construction costs by 3.5–4.5%, improving project viability and potentially enhancing affordability if developers pass on the benefits.

Impact on housing categories

• Affordable and mid-income housing: Likely to benefit the most, with lower input costs encouraging developers to launch new projects.
• Premium housing: Reduction in marble and granite GST will particularly support cost efficiency here.
• Homebuyers: With no tax hikes and potential cost savings, buying decisions are unlikely to be deferred.

Overall, the reforms are being seen as a marginally positive step for the real estate sector—especially if the savings get shared with buyers.

Also Read: Homebuyers to Benefit as GST on Cement, Building Materials Cut From Sept 22

The post Cheaper Cement, Stable GST on Homes: What It Means for Homebuyers appeared first on Square Feat India.

Why It Matters for Homebuyers

• Cheaper Homes: Reduced GST on cement (28% → 18%), bricks, tiles, ceramics, sanitaryware, and granite blocks will lower overall construction costs by 3–5%.
• Affordable Housing Push: ANAROCK data shows affordable housing sales share plunged from 38% in 2019 to just 18% in 2024. Lower costs could reverse this trend.
• Clearer Pricing: A simplified two-slab GST (5% and 18%) brings transparency for buyers, encouraging more fence-sitters to purchase homes, especially in tier-II and tier-III cities.

Expert Voices

Anuj Puri, Chairman, ANAROCK Group
“The GST rationalisation is a timely intervention for the housing sector. Affordable housing has lost significant share over the past five years due to rising input costs and muted demand. Lower construction costs will not only revive developer interest in this segment but also make homes more affordable for end-users. This clarity in taxation will particularly encourage first-time homebuyers in smaller cities to take buying decisions.”

Neeraj Akhoury, President, Cement Manufacturers’ Association & MD, Shree Cement Ltd.
“Reducing GST on cement to 18% corrects a long-standing anomaly. Cement was one of the highest-taxed essential materials. This change ensures parity with other core construction inputs and aligns India with global practices. As cement is the backbone of housing and infrastructure, this rationalisation will boost both consumption and affordability.”

Pradeep Aggarwal, Founder & Chairman, Signature Global
“We wholeheartedly welcome the GST Council’s move. By lowering taxes on cement and other inputs, home prices can come down, creating sustainable demand across housing categories.”

Manju Yagnik, Vice Chairperson, Nahar Group & Senior VP, NAREDCO Maharashtra
“This is a transformative reform that reduces input costs and makes housing more accessible, particularly in the affordable and mid-income segments where demand is strongest.”

Bottom Line

With India facing an urban housing shortfall of nearly 1 crore budget homes, this GST rationalisation provides relief when it’s most needed. Developers gain cost efficiency and buyers get improved affordability—together setting the stage for a festive season boost in housing demand.

Also Read: Economic Impact of Cement

The post Homebuyers to Benefit as GST on Cement, Building Materials Cut From Sept 22 appeared first on Square Feat India.