September 22, 2025: The real estate sector appears largely unfazed by the new GST slab structure, which reduces GST on cement from 28% to 18%. Industry experts estimate that the overall impact on property prices would be around 3-5%. At a property show on the eve of September 21, visitors explored projects from various developers, but GST was not a topic of discussion.
“We have decided to absorb the GST ourselves and don’t include it in the overall pricing. It will be intimidating if we add that too,” said Sandeep Reddy, Director, Aditya Construction Company. “For the two projects ready for occupation, we are not charging any GST. For the third, we have not taken a call yet.”
The South Indian Cement Manufacturers’ Association (SICMA) welcomed the reform, noting that lower tax rates would enhance affordability and strengthen competitiveness. “Cement being a core input in housing, infrastructure, and industrial projects, the lower tax rate will reduce construction costs, benefiting home builders, affordable housing, and public infrastructure,” said Gopinath, CEO, SICMA.
Developers say the GST change has not altered their project timelines or demand. “Our business strategy is anchored in long-term planning and demand dynamics, and all our launches are progressing as scheduled. The GST reduction is a welcome structural reform that will strengthen affordability and sentiment in the medium to long run, but it has not impacted our immediate cycle,” said CG Sathish, Deputy Managing Director, Casagrand. He added that bookings have continued steadily, with buyers focused on location, quality, and timely delivery.
Ranjeeth Rathod, MD of DRA, noted, “It is marginal. There has been no slowdown, and demand is still good. We are launching three projects in the next two months.” Gopalakrishnan J, ED & Group CEO, Shriram Properties Ltd, said the GST cut reinforces buyer confidence and adds momentum to the housing sector.
“Most buyers continue to make long-term decisions based on lifestyle needs and financial planning. We believe this reform will benefit both homebuyers and developers, creating healthier market dynamics and contributing meaningfully to India’s housing growth story,” he said.
Source: The Hindu Business Line
