We welcome the GST Council’s landmark decision to rationalise tax rates on essential construction materials. The rate cut from 28% to 18% on cement, and from 12% to 5% on construction and finishing materials, is a strategic move. It will significantly ease project costs for developers and boost affordability for homebuyers. For developers, this relief lowers input costs and strengthens project viability. Industry voices estimate that overall construction costs could decline up to 5%. This offers scope for improved margins, as well as better pricing for end-users.

From the perspective of the housing market, especially the affordable and mid-income segments, this development is timely and impactful. Rising construction costs and pressure on margins have presented significant challenges to the sector. The potential pass-through of savings will encourage renewed demand. It will also enable more accessible homeownership.

At Shapoorji Pallonji Real Estate, we see this GST rationalisation as a much-needed stimulus. It simplifies tax structures and enhances transparency. It also aligns with the current positive buyer sentiment. We are optimistic that this reform will enhance purchase intent. This is especially true as we enter the festive season, a traditionally strong period for the real estate market.

Venkatesh Gopalakrishnan, Director Group Promoter’s Office, MD – Shapoorji Pallonji Real Estate (SPRE)