Navratri 2025 has kicked off with a major reform for India’s housing sector. From September 22, the new GST 2.0 structure has come into effect, slashing tax rates on key construction materials like cement, tiles, and paints. The big question: will this finally make homes more affordable?
Also Read:- Historic Diwali Gift for the Nation: Govt Announces Massive GST Cuts Across Sectors
What Has Changed Under GST 2.0?
The GST Council has rationalised tax slabs, reducing them from four (5%, 12%, 18%, 28%) to just two—5% and 18%. Ultra-luxury items remain at 40%. The most significant relief is for the construction sector:
- Cement & Ready-Mix Concrete: 18% (down from 28%)
- Bricks, Tiles, Sand: 5% (down from 18%)
- Paints & Varnishes: 18% (down from 28%)
Prime Minister Narendra Modi called this reform a “GST Bachat Utsav”, highlighting its impact on both developers and homebuyers.
How Will This Impact Developers?
For developers, cement and concrete costs alone contribute heavily to project budgets. With the tax reduced by 10%, construction costs are expected to drop 3–5% overall. According to NAREDCO President G Hari Babu, this translates into savings of nearly ₹1,000 per square metre—a massive boost for housing and commercial projects.
If cement companies pass on these benefits, developers will be able to launch new projects at more competitive prices, helping to increase affordability and build buyer confidence. If not, the real estate sector may seek government intervention to ensure fair benefit transfer.
What Does This Mean for Homebuyers?
For buyers, especially in the affordable and mid-segment housing market, the GST cut could make a real difference. Experts estimate:
- Potential reduction in home prices: 1%–1.5%
- Savings per buyer: ₹1–3 lakh, depending on ticket size
- Biggest benefit: Lower upfront payments and reduced home loan requirements
However, don’t expect instant price drops on ongoing projects where materials have already been procured. Instead, buyers may see festive discounts, flexible payment plans, or special offers this season. The full impact will be more visible in new project launches, where procurement begins afresh under the revised GST rates.
Industry Reactions to GST 2.0
The mood in the real estate sector is upbeat:
- NAREDCO: Called it a “progressive step” with the potential to transform affordability.
- CREDAI: With 13,000 members, the body noted that GST cuts will improve buyer sentiment and support strong festive sales. Chairman Boman Irani called it a “feel-good factor,” while President Shekhar Patel said combined benefits from GST, RBI’s repo rate cuts, and Budget incentives could give housing demand a “huge filip.”
- Savills India (Anurag Mathur): Estimated that the reforms will lower GST burden by 20% across housing, commercial, industrial, and warehousing segments—giving affordable and mid-segment housing the biggest push.
Should You Buy Now or Wait?
If you’re eyeing a property this festive season, here’s what to keep in mind:
- Ongoing projects: Don’t expect big price cuts. Instead, look for flexible plans and festive deals.
- New launches: Better chance of savings as developers will procure under lower GST rates.
- Long-term impact: As procurement cycles adjust, costs will gradually come down by 2–4%, making homes more competitively priced.
Final Word
The GST 2.0 reform is a step towards lowering home-buying costs, but the immediate impact will depend on how sincerely cement companies and developers pass on the benefits. For buyers, it may not mean overnight discounts, but the combination of GST cuts, festive offers, and easing financial conditions makes Navratri 2025 one of the best times to start your home search.
Navratri 2025 has kicked off with a major reform for India’s housing sector. From September 22, the new GST 2.0 structure has come into effect, slashing tax rates on key construction materials like cement, tiles, and paints. The big question: will this finally make homes more affordable?
Also Read:- Historic Diwali Gift for the Nation: Govt Announces Massive GST Cuts Across Sectors
What Has Changed Under GST 2.0?
The GST Council has rationalised tax slabs, reducing them from four (5%, 12%, 18%, 28%) to just two—5% and 18%. Ultra-luxury items remain at 40%. The most significant relief is for the construction sector:
- Cement & Ready-Mix Concrete: 18% (down from 28%)
- Bricks, Tiles, Sand: 5% (down from 18%)
- Paints & Varnishes: 18% (down from 28%)
Prime Minister Narendra Modi called this reform a “GST Bachat Utsav”, highlighting its impact on both developers and homebuyers.
How Will This Impact Developers?
For developers, cement and concrete costs alone contribute heavily to project budgets. With the tax reduced by 10%, construction costs are expected to drop 3–5% overall. According to NAREDCO President G Hari Babu, this translates into savings of nearly ₹1,000 per square metre—a massive boost for housing and commercial projects.
If cement companies pass on these benefits, developers will be able to launch new projects at more competitive prices, helping to increase affordability and build buyer confidence. If not, the real estate sector may seek government intervention to ensure fair benefit transfer.
What Does This Mean for Homebuyers?
For buyers, especially in the affordable and mid-segment housing market, the GST cut could make a real difference. Experts estimate:
- Potential reduction in home prices: 1%–1.5%
- Savings per buyer: ₹1–3 lakh, depending on ticket size
- Biggest benefit: Lower upfront payments and reduced home loan requirements
However, don’t expect instant price drops on ongoing projects where materials have already been procured. Instead, buyers may see festive discounts, flexible payment plans, or special offers this season. The full impact will be more visible in new project launches, where procurement begins afresh under the revised GST rates.
Industry Reactions to GST 2.0
The mood in the real estate sector is upbeat:
- NAREDCO: Called it a “progressive step” with the potential to transform affordability.
- CREDAI: With 13,000 members, the body noted that GST cuts will improve buyer sentiment and support strong festive sales. Chairman Boman Irani called it a “feel-good factor,” while President Shekhar Patel said combined benefits from GST, RBI’s repo rate cuts, and Budget incentives could give housing demand a “huge filip.”
- Savills India (Anurag Mathur): Estimated that the reforms will lower GST burden by 20% across housing, commercial, industrial, and warehousing segments—giving affordable and mid-segment housing the biggest push.
Should You Buy Now or Wait?
If you’re eyeing a property this festive season, here’s what to keep in mind:
- Ongoing projects: Don’t expect big price cuts. Instead, look for flexible plans and festive deals.
- New launches: Better chance of savings as developers will procure under lower GST rates.
- Long-term impact: As procurement cycles adjust, costs will gradually come down by 2–4%, making homes more competitively priced.
Final Word
The GST 2.0 reform is a step towards lowering home-buying costs, but the immediate impact will depend on how sincerely cement companies and developers pass on the benefits. For buyers, it may not mean overnight discounts, but the combination of GST cuts, festive offers, and easing financial conditions makes Navratri 2025 one of the best times to start your home search.
