On September 22, 2025, coinciding with Navratri, India’s GST Council rolled out significant tax rate reductions on key building materials, a move that could make buying a home more affordable.
Under the updated GST slab system (GST 2.0), several materials saw major reductions: cement and ready-mix concrete are now taxed at 18% instead of 28%; bricks, tiles and sand have been moved down to 5% from 18%; and paints & varnishes also dropped from 28% to 18%.
Real estate experts believe these changes may lower construction costs by roughly 3-5%, potentially translating into 1-1.5% savings for homebuyers, specially those buying in the affordable to mid-segment housing categories. Developers are expected to gain direct cost relief, but the extent of savings passed on to buyers will depend on factors such as procurement timing, fresh material purchases and the stage of project completion.
For ongoing projects that have already purchased most materials, buyers may not see immediate price reductions. However, new launches and projects beginning construction now are expected to reflect the benefits more clearly. In addition, the festive season demand combined with developer incentives like flexible payment plans and discounts could further improve affordability.
Overall, the GST cuts mark a positive step toward reducing housing costs and boosting demand in the real estate sector, offering a much-needed relief for both developers and aspiring homeowners.
