India’s new Goods and Services Tax (GST) framework officially came into effect on September 22, 2025, raising hopes of lower housing costs for millions of aspiring homeowners. While the revised tax system has triggered excitement, experts caution that the real benefit of cheaper homes may not reach buyers for several more months.

Why GST Impact on Housing Is Complicated

The government introduced changes in GST with the objective of simplifying taxation and reducing costs across industries. While sectors like automobiles and FMCG are likely to feel immediate relief, the real estate sector is more complex.

In housing projects, nearly 50% of the cost comes from land, which is not covered under GST. The remaining cost depends on construction materials like cement, steel, tiles, and marble—each taxed at different rates. This fragmented structure means developers need time to assess how the revised tax rates impact overall project costs.

Developers Reworking Project Costs

According to a senior executive of a Delhi-based realty firm, pricing in real estate is unlike consumer goods where reductions are straightforward. Developers must re-evaluate project budgets, input tax credits, and tax liabilities under the new regime. Only after this recalculation will it be clear how much benefit can actually be passed on to buyers.

Many developers are already recalculating costs under the revised GST. For instance, cement now attracts 18% GST instead of 28%, while certain natural stones like granite and marble blocks also come under reduced rates. If these savings lower construction costs significantly, developers could eventually offer more affordable homes.

Expert Opinions: Patience Needed

Real estate experts agree that the GST transition could create a positive environment for buyers, but the impact won’t be immediate.

Anshuman Magazine, Chairman and CEO of CBRE, notes:
“GST reforms will stimulate demand in India, especially before the festive season. Consumer-facing sectors may show faster results, but real estate is more layered. Developers may see reduced input costs, but transferring that benefit to buyers will take time.”

Similarly, Pradeep Aggarwal, Founder of Signature Global (India) Ltd, explains:
“Although GST rates on housing itself haven’t changed, lower taxes on materials like cement will reduce construction expenses. If developers pass on the savings, buyers will eventually gain.”

Festive Season Strategy

With the festive season approaching, developers may adopt flexible payment plans and limited-time offers to attract buyers. However, whether GST reforms alone will bring long-term affordability in the housing market remains uncertain.

Homebuyers Must Manage Expectations

Market analysts advise caution for those planning to buy a house soon. A tax consultant told Moneycontrol:
“Expecting immediate price drops would be unrealistic. The sector needs a few months to stabilize under the new GST system. Buyers should remain patient and manage expectations accordingly.”

The Bottom Line

The new GST system marks a significant reform for India’s taxation landscape, with long-term benefits expected for both businesses and consumers. For homebuyers, however, the wait for cheaper housing may extend over several months as developers reassess costs, adapt strategies, and decide how much benefit to share with buyers.

Until then, industry watchers suggest that buyers focus on evaluating festive offers but avoid rushing purchases based solely on GST expectations.

New GST Rules in Real Estate: Why Cheaper Homes Will Take Months to Become a Reality

September 23, 2025 | Updated 5:54 PM IST

India’s new Goods and Services Tax (GST) framework officially came into effect on September 22, 2025, raising hopes of lower housing costs for millions of aspiring homeowners. While the revised tax system has triggered excitement, experts caution that the real benefit of cheaper homes may not reach buyers for several more months.

Why GST Impact on Housing Is Complicated

The government introduced changes in GST with the objective of simplifying taxation and reducing costs across industries. While sectors like automobiles and FMCG are likely to feel immediate relief, the real estate sector is more complex.

In housing projects, nearly 50% of the cost comes from land, which is not covered under GST. The remaining cost depends on construction materials like cement, steel, tiles, and marble—each taxed at different rates. This fragmented structure means developers need time to assess how the revised tax rates impact overall project costs.

Developers Reworking Project Costs

According to a senior executive of a Delhi-based realty firm, pricing in real estate is unlike consumer goods where reductions are straightforward. Developers must re-evaluate project budgets, input tax credits, and tax liabilities under the new regime. Only after this recalculation will it be clear how much benefit can actually be passed on to buyers.

Many developers are already recalculating costs under the revised GST. For instance, cement now attracts 18% GST instead of 28%, while certain natural stones like granite and marble blocks also come under reduced rates. If these savings lower construction costs significantly, developers could eventually offer more affordable homes.

Expert Opinions: Patience Needed

Real estate experts agree that the GST transition could create a positive environment for buyers, but the impact won’t be immediate.

Anshuman Magazine, Chairman and CEO of CBRE, notes:
“GST reforms will stimulate demand in India, especially before the festive season. Consumer-facing sectors may show faster results, but real estate is more layered. Developers may see reduced input costs, but transferring that benefit to buyers will take time.”

Similarly, Pradeep Aggarwal, Founder of Signature Global (India) Ltd, explains:
“Although GST rates on housing itself haven’t changed, lower taxes on materials like cement will reduce construction expenses. If developers pass on the savings, buyers will eventually gain.”

Festive Season Strategy

With the festive season approaching, developers may adopt flexible payment plans and limited-time offers to attract buyers. However, whether GST reforms alone will bring long-term affordability in the housing market remains uncertain.

Homebuyers Must Manage Expectations

Market analysts advise caution for those planning to buy a house soon. A tax consultant told Moneycontrol:
“Expecting immediate price drops would be unrealistic. The sector needs a few months to stabilize under the new GST system. Buyers should remain patient and manage expectations accordingly.”

The Bottom Line

The new GST system marks a significant reform for India’s taxation landscape, with long-term benefits expected for both businesses and consumers. For homebuyers, however, the wait for cheaper housing may extend over several months as developers reassess costs, adapt strategies, and decide how much benefit to share with buyers.

Until then, industry watchers suggest that buyers focus on evaluating festive offers but avoid rushing purchases based solely on GST expectations.

New GST Rules in Real Estate: Why Cheaper Homes Will Take Months to Become a Reality

September 23, 2025 | Updated 5:54 PM IST

India’s new Goods and Services Tax (GST) framework officially came into effect on September 22, 2025, raising hopes of lower housing costs for millions of aspiring homeowners. While the revised tax system has triggered excitement, experts caution that the real benefit of cheaper homes may not reach buyers for several more months.

Why GST Impact on Housing Is Complicated

The government introduced changes in GST with the objective of simplifying taxation and reducing costs across industries. While sectors like automobiles and FMCG are likely to feel immediate relief, the real estate sector is more complex.

In housing projects, nearly 50% of the cost comes from land, which is not covered under GST. The remaining cost depends on construction materials like cement, steel, tiles, and marble—each taxed at different rates. This fragmented structure means developers need time to assess how the revised tax rates impact overall project costs.

Developers Reworking Project Costs

According to a senior executive of a Delhi-based realty firm, pricing in real estate is unlike consumer goods where reductions are straightforward. Developers must re-evaluate project budgets, input tax credits, and tax liabilities under the new regime. Only after this recalculation will it be clear how much benefit can actually be passed on to buyers.

Many developers are already recalculating costs under the revised GST. For instance, cement now attracts 18% GST instead of 28%, while certain natural stones like granite and marble blocks also come under reduced rates. If these savings lower construction costs significantly, developers could eventually offer more affordable homes.

Expert Opinions: Patience Needed

Real estate experts agree that the GST transition could create a positive environment for buyers, but the impact won’t be immediate.

Anshuman Magazine, Chairman and CEO of CBRE, notes:
“GST reforms will stimulate demand in India, especially before the festive season. Consumer-facing sectors may show faster results, but real estate is more layered. Developers may see reduced input costs, but transferring that benefit to buyers will take time.”

Similarly, Pradeep Aggarwal, Founder of Signature Global (India) Ltd, explains:
“Although GST rates on housing itself haven’t changed, lower taxes on materials like cement will reduce construction expenses. If developers pass on the savings, buyers will eventually gain.”

Festive Season Strategy

With the festive season approaching, developers may adopt flexible payment plans and limited-time offers to attract buyers. However, whether GST reforms alone will bring long-term affordability in the housing market remains uncertain.

Homebuyers Must Manage Expectations

Market analysts advise caution for those planning to buy a house soon. A tax consultant told Moneycontrol:
“Expecting immediate price drops would be unrealistic. The sector needs a few months to stabilize under the new GST system. Buyers should remain patient and manage expectations accordingly.”

The Bottom Line

The new GST system marks a significant reform for India’s taxation landscape, with long-term benefits expected for both businesses and consumers. For homebuyers, however, the wait for cheaper housing may extend over several months as developers reassess costs, adapt strategies, and decide how much benefit to share with buyers.

Until then, industry watchers suggest that buyers focus on evaluating festive offers but avoid rushing purchases based solely on GST expectations.

New GST Rules in Real Estate: Why Cheaper Homes Will Take Months to Become a Reality

September 23, 2025 | Updated 5:54 PM IST

India’s new Goods and Services Tax (GST) framework officially came into effect on September 22, 2025, raising hopes of lower housing costs for millions of aspiring homeowners. While the revised tax system has triggered excitement, experts caution that the real benefit of cheaper homes may not reach buyers for several more months.

Why GST Impact on Housing Is Complicated

The government introduced changes in GST with the objective of simplifying taxation and reducing costs across industries. While sectors like automobiles and FMCG are likely to feel immediate relief, the real estate sector is more complex.

In housing projects, nearly 50% of the cost comes from land, which is not covered under GST. The remaining cost depends on construction materials like cement, steel, tiles, and marble—each taxed at different rates. This fragmented structure means developers need time to assess how the revised tax rates impact overall project costs.

Developers Reworking Project Costs

According to a senior executive of a Delhi-based realty firm, pricing in real estate is unlike consumer goods where reductions are straightforward. Developers must re-evaluate project budgets, input tax credits, and tax liabilities under the new regime. Only after this recalculation will it be clear how much benefit can actually be passed on to buyers.

Many developers are already recalculating costs under the revised GST. For instance, cement now attracts 18% GST instead of 28%, while certain natural stones like granite and marble blocks also come under reduced rates. If these savings lower construction costs significantly, developers could eventually offer more affordable homes.

Expert Opinions: Patience Needed

Real estate experts agree that the GST transition could create a positive environment for buyers, but the impact won’t be immediate.

Anshuman Magazine, Chairman and CEO of CBRE, notes:
“GST reforms will stimulate demand in India, especially before the festive season. Consumer-facing sectors may show faster results, but real estate is more layered. Developers may see reduced input costs, but transferring that benefit to buyers will take time.”

Similarly, Pradeep Aggarwal, Founder of Signature Global (India) Ltd, explains:
“Although GST rates on housing itself haven’t changed, lower taxes on materials like cement will reduce construction expenses. If developers pass on the savings, buyers will eventually gain.”

Festive Season Strategy

With the festive season approaching, developers may adopt flexible payment plans and limited-time offers to attract buyers. However, whether GST reforms alone will bring long-term affordability in the housing market remains uncertain.

Homebuyers Must Manage Expectations

Market analysts advise caution for those planning to buy a house soon. A tax consultant told Moneycontrol:
“Expecting immediate price drops would be unrealistic. The sector needs a few months to stabilize under the new GST system. Buyers should remain patient and manage expectations accordingly.”

The Bottom Line

The new GST system marks a significant reform for India’s taxation landscape, with long-term benefits expected for both businesses and consumers. For homebuyers, however, the wait for cheaper housing may extend over several months as developers reassess costs, adapt strategies, and decide how much benefit to share with buyers.

Until then, industry watchers suggest that buyers focus on evaluating festive offers but avoid rushing purchases based solely on GST expectations.

New GST Rules in Real Estate: Why Cheaper Homes Will Take Months to Become a Reality

September 23, 2025 | Updated 5:54 PM IST

India’s new Goods and Services Tax (GST) framework officially came into effect on September 22, 2025, raising hopes of lower housing costs for millions of aspiring homeowners. While the revised tax system has triggered excitement, experts caution that the real benefit of cheaper homes may not reach buyers for several more months.

Why GST Impact on Housing Is Complicated

The government introduced changes in GST with the objective of simplifying taxation and reducing costs across industries. While sectors like automobiles and FMCG are likely to feel immediate relief, the real estate sector is more complex.

In housing projects, nearly 50% of the cost comes from land, which is not covered under GST. The remaining cost depends on construction materials like cement, steel, tiles, and marble—each taxed at different rates. This fragmented structure means developers need time to assess how the revised tax rates impact overall project costs.

Developers Reworking Project Costs

According to a senior executive of a Delhi-based realty firm, pricing in real estate is unlike consumer goods where reductions are straightforward. Developers must re-evaluate project budgets, input tax credits, and tax liabilities under the new regime. Only after this recalculation will it be clear how much benefit can actually be passed on to buyers.

Many developers are already recalculating costs under the revised GST. For instance, cement now attracts 18% GST instead of 28%, while certain natural stones like granite and marble blocks also come under reduced rates. If these savings lower construction costs significantly, developers could eventually offer more affordable homes.

Expert Opinions: Patience Needed

Real estate experts agree that the GST transition could create a positive environment for buyers, but the impact won’t be immediate.

Anshuman Magazine, Chairman and CEO of CBRE, notes:
“GST reforms will stimulate demand in India, especially before the festive season. Consumer-facing sectors may show faster results, but real estate is more layered. Developers may see reduced input costs, but transferring that benefit to buyers will take time.”

Similarly, Pradeep Aggarwal, Founder of Signature Global (India) Ltd, explains:
“Although GST rates on housing itself haven’t changed, lower taxes on materials like cement will reduce construction expenses. If developers pass on the savings, buyers will eventually gain.”

Festive Season Strategy

With the festive season approaching, developers may adopt flexible payment plans and limited-time offers to attract buyers. However, whether GST reforms alone will bring long-term affordability in the housing market remains uncertain.

Homebuyers Must Manage Expectations

Market analysts advise caution for those planning to buy a house soon. A tax consultant told Moneycontrol:
“Expecting immediate price drops would be unrealistic. The sector needs a few months to stabilize under the new GST system. Buyers should remain patient and manage expectations accordingly.”

The Bottom Line

The new GST system marks a significant reform for India’s taxation landscape, with long-term benefits expected for both businesses and consumers. For homebuyers, however, the wait for cheaper housing may extend over several months as developers reassess costs, adapt strategies, and decide how much benefit to share with buyers.

Until then, industry watchers suggest that buyers focus on evaluating festive offers but avoid rushing purchases based solely on GST expectations.

New GST Rules in Real Estate: Why Cheaper Homes Will Take Months to Become a Reality

September 23, 2025 | Updated 5:54 PM IST

India’s new Goods and Services Tax (GST) framework officially came into effect on September 22, 2025, raising hopes of lower housing costs for millions of aspiring homeowners. While the revised tax system has triggered excitement, experts caution that the real benefit of cheaper homes may not reach buyers for several more months.

Why GST Impact on Housing Is Complicated

The government introduced changes in GST with the objective of simplifying taxation and reducing costs across industries. While sectors like automobiles and FMCG are likely to feel immediate relief, the real estate sector is more complex.

In housing projects, nearly 50% of the cost comes from land, which is not covered under GST. The remaining cost depends on construction materials like cement, steel, tiles, and marble—each taxed at different rates. This fragmented structure means developers need time to assess how the revised tax rates impact overall project costs.

Developers Reworking Project Costs

According to a senior executive of a Delhi-based realty firm, pricing in real estate is unlike consumer goods where reductions are straightforward. Developers must re-evaluate project budgets, input tax credits, and tax liabilities under the new regime. Only after this recalculation will it be clear how much benefit can actually be passed on to buyers.

Many developers are already recalculating costs under the revised GST. For instance, cement now attracts 18% GST instead of 28%, while certain natural stones like granite and marble blocks also come under reduced rates. If these savings lower construction costs significantly, developers could eventually offer more affordable homes.

Expert Opinions: Patience Needed

Real estate experts agree that the GST transition could create a positive environment for buyers, but the impact won’t be immediate.

Anshuman Magazine, Chairman and CEO of CBRE, notes:
“GST reforms will stimulate demand in India, especially before the festive season. Consumer-facing sectors may show faster results, but real estate is more layered. Developers may see reduced input costs, but transferring that benefit to buyers will take time.”

Similarly, Pradeep Aggarwal, Founder of Signature Global (India) Ltd, explains:
“Although GST rates on housing itself haven’t changed, lower taxes on materials like cement will reduce construction expenses. If developers pass on the savings, buyers will eventually gain.”

Festive Season Strategy

With the festive season approaching, developers may adopt flexible payment plans and limited-time offers to attract buyers. However, whether GST reforms alone will bring long-term affordability in the housing market remains uncertain.

Homebuyers Must Manage Expectations

Market analysts advise caution for those planning to buy a house soon. A tax consultant told Moneycontrol:
“Expecting immediate price drops would be unrealistic. The sector needs a few months to stabilize under the new GST system. Buyers should remain patient and manage expectations accordingly.”

The Bottom Line

The new GST system marks a significant reform for India’s taxation landscape, with long-term benefits expected for both businesses and consumers. For homebuyers, however, the wait for cheaper housing may extend over several months as developers reassess costs, adapt strategies, and decide how much benefit to share with buyers.

Until then, industry watchers suggest that buyers focus on evaluating festive offers but avoid rushing purchases based solely on GST expectations.

New GST Rules in Real Estate: Why Cheaper Homes Will Take Months to Become a Reality

September 23, 2025 | Updated 5:54 PM IST

India’s new Goods and Services Tax (GST) framework officially came into effect on September 22, 2025, raising hopes of lower housing costs for millions of aspiring homeowners. While the revised tax system has triggered excitement, experts caution that the real benefit of cheaper homes may not reach buyers for several more months.

Why GST Impact on Housing Is Complicated

The government introduced changes in GST with the objective of simplifying taxation and reducing costs across industries. While sectors like automobiles and FMCG are likely to feel immediate relief, the real estate sector is more complex.

In housing projects, nearly 50% of the cost comes from land, which is not covered under GST. The remaining cost depends on construction materials like cement, steel, tiles, and marble—each taxed at different rates. This fragmented structure means developers need time to assess how the revised tax rates impact overall project costs.

Developers Reworking Project Costs

According to a senior executive of a Delhi-based realty firm, pricing in real estate is unlike consumer goods where reductions are straightforward. Developers must re-evaluate project budgets, input tax credits, and tax liabilities under the new regime. Only after this recalculation will it be clear how much benefit can actually be passed on to buyers.

Many developers are already recalculating costs under the revised GST. For instance, cement now attracts 18% GST instead of 28%, while certain natural stones like granite and marble blocks also come under reduced rates. If these savings lower construction costs significantly, developers could eventually offer more affordable homes.

Expert Opinions: Patience Needed

Real estate experts agree that the GST transition could create a positive environment for buyers, but the impact won’t be immediate.

Anshuman Magazine, Chairman and CEO of CBRE, notes:
“GST reforms will stimulate demand in India, especially before the festive season. Consumer-facing sectors may show faster results, but real estate is more layered. Developers may see reduced input costs, but transferring that benefit to buyers will take time.”

Similarly, Pradeep Aggarwal, Founder of Signature Global (India) Ltd, explains:
“Although GST rates on housing itself haven’t changed, lower taxes on materials like cement will reduce construction expenses. If developers pass on the savings, buyers will eventually gain.”

Festive Season Strategy

With the festive season approaching, developers may adopt flexible payment plans and limited-time offers to attract buyers. However, whether GST reforms alone will bring long-term affordability in the housing market remains uncertain.

Homebuyers Must Manage Expectations

Market analysts advise caution for those planning to buy a house soon. A tax consultant told Moneycontrol:
“Expecting immediate price drops would be unrealistic. The sector needs a few months to stabilize under the new GST system. Buyers should remain patient and manage expectations accordingly.”

The Bottom Line

The new GST system marks a significant reform for India’s taxation landscape, with long-term benefits expected for both businesses and consumers. For homebuyers, however, the wait for cheaper housing may extend over several months as developers reassess costs, adapt strategies, and decide how much benefit to share with buyers.

Until then, industry watchers suggest that buyers focus on evaluating festive offers but avoid rushing purchases based solely on GST expectations.

New GST Rules in Real Estate: Why Cheaper Homes Will Take Months to Become a Reality

September 23, 2025 | Updated 5:54 PM IST

India’s new Goods and Services Tax (GST) framework officially came into effect on September 22, 2025, raising hopes of lower housing costs for millions of aspiring homeowners. While the revised tax system has triggered excitement, experts caution that the real benefit of cheaper homes may not reach buyers for several more months.

Why GST Impact on Housing Is Complicated

The government introduced changes in GST with the objective of simplifying taxation and reducing costs across industries. While sectors like automobiles and FMCG are likely to feel immediate relief, the real estate sector is more complex.

In housing projects, nearly 50% of the cost comes from land, which is not covered under GST. The remaining cost depends on construction materials like cement, steel, tiles, and marble—each taxed at different rates. This fragmented structure means developers need time to assess how the revised tax rates impact overall project costs.

Developers Reworking Project Costs

According to a senior executive of a Delhi-based realty firm, pricing in real estate is unlike consumer goods where reductions are straightforward. Developers must re-evaluate project budgets, input tax credits, and tax liabilities under the new regime. Only after this recalculation will it be clear how much benefit can actually be passed on to buyers.

Many developers are already recalculating costs under the revised GST. For instance, cement now attracts 18% GST instead of 28%, while certain natural stones like granite and marble blocks also come under reduced rates. If these savings lower construction costs significantly, developers could eventually offer more affordable homes.

Expert Opinions: Patience Needed

Real estate experts agree that the GST transition could create a positive environment for buyers, but the impact won’t be immediate.

Anshuman Magazine, Chairman and CEO of CBRE, notes:
“GST reforms will stimulate demand in India, especially before the festive season. Consumer-facing sectors may show faster results, but real estate is more layered. Developers may see reduced input costs, but transferring that benefit to buyers will take time.”

Similarly, Pradeep Aggarwal, Founder of Signature Global (India) Ltd, explains:
“Although GST rates on housing itself haven’t changed, lower taxes on materials like cement will reduce construction expenses. If developers pass on the savings, buyers will eventually gain.”

Festive Season Strategy

With the festive season approaching, developers may adopt flexible payment plans and limited-time offers to attract buyers. However, whether GST reforms alone will bring long-term affordability in the housing market remains uncertain.

Homebuyers Must Manage Expectations

Market analysts advise caution for those planning to buy a house soon. A tax consultant told Moneycontrol:
“Expecting immediate price drops would be unrealistic. The sector needs a few months to stabilize under the new GST system. Buyers should remain patient and manage expectations accordingly.”

The Bottom Line

The new GST system marks a significant reform for India’s taxation landscape, with long-term benefits expected for both businesses and consumers. For homebuyers, however, the wait for cheaper housing may extend over several months as developers reassess costs, adapt strategies, and decide how much benefit to share with buyers.

Until then, industry watchers suggest that buyers focus on evaluating festive offers but avoid rushing purchases based solely on GST expectations.

New GST Rules in Real Estate: Why Cheaper Homes Will Take Months to Become a Reality

September 23, 2025 | Updated 5:54 PM IST

India’s new Goods and Services Tax (GST) framework officially came into effect on September 22, 2025, raising hopes of lower housing costs for millions of aspiring homeowners. While the revised tax system has triggered excitement, experts caution that the real benefit of cheaper homes may not reach buyers for several more months.

Why GST Impact on Housing Is Complicated

The government introduced changes in GST with the objective of simplifying taxation and reducing costs across industries. While sectors like automobiles and FMCG are likely to feel immediate relief, the real estate sector is more complex.

In housing projects, nearly 50% of the cost comes from land, which is not covered under GST. The remaining cost depends on construction materials like cement, steel, tiles, and marble—each taxed at different rates. This fragmented structure means developers need time to assess how the revised tax rates impact overall project costs.

Developers Reworking Project Costs

According to a senior executive of a Delhi-based realty firm, pricing in real estate is unlike consumer goods where reductions are straightforward. Developers must re-evaluate project budgets, input tax credits, and tax liabilities under the new regime. Only after this recalculation will it be clear how much benefit can actually be passed on to buyers.

Many developers are already recalculating costs under the revised GST. For instance, cement now attracts 18% GST instead of 28%, while certain natural stones like granite and marble blocks also come under reduced rates. If these savings lower construction costs significantly, developers could eventually offer more affordable homes.

Expert Opinions: Patience Needed

Real estate experts agree that the GST transition could create a positive environment for buyers, but the impact won’t be immediate.

Anshuman Magazine, Chairman and CEO of CBRE, notes:
“GST reforms will stimulate demand in India, especially before the festive season. Consumer-facing sectors may show faster results, but real estate is more layered. Developers may see reduced input costs, but transferring that benefit to buyers will take time.”

Similarly, Pradeep Aggarwal, Founder of Signature Global (India) Ltd, explains:
“Although GST rates on housing itself haven’t changed, lower taxes on materials like cement will reduce construction expenses. If developers pass on the savings, buyers will eventually gain.”

Festive Season Strategy

With the festive season approaching, developers may adopt flexible payment plans and limited-time offers to attract buyers. However, whether GST reforms alone will bring long-term affordability in the housing market remains uncertain.

Homebuyers Must Manage Expectations

Market analysts advise caution for those planning to buy a house soon. A tax consultant told Moneycontrol:
“Expecting immediate price drops would be unrealistic. The sector needs a few months to stabilize under the new GST system. Buyers should remain patient and manage expectations accordingly.”

The Bottom Line

The new GST system marks a significant reform for India’s taxation landscape, with long-term benefits expected for both businesses and consumers. For homebuyers, however, the wait for cheaper housing may extend over several months as developers reassess costs, adapt strategies, and decide how much benefit to share with buyers.

Until then, industry watchers suggest that buyers focus on evaluating festive offers but avoid rushing purchases based solely on GST expectations.

New GST Rules in Real Estate: Why Cheaper Homes Will Take Months to Become a Reality

September 23, 2025 | Updated 5:54 PM IST

India’s new Goods and Services Tax (GST) framework officially came into effect on September 22, 2025, raising hopes of lower housing costs for millions of aspiring homeowners. While the revised tax system has triggered excitement, experts caution that the real benefit of cheaper homes may not reach buyers for several more months.

Why GST Impact on Housing Is Complicated

The government introduced changes in GST with the objective of simplifying taxation and reducing costs across industries. While sectors like automobiles and FMCG are likely to feel immediate relief, the real estate sector is more complex.

In housing projects, nearly 50% of the cost comes from land, which is not covered under GST. The remaining cost depends on construction materials like cement, steel, tiles, and marble—each taxed at different rates. This fragmented structure means developers need time to assess how the revised tax rates impact overall project costs.

Developers Reworking Project Costs

According to a senior executive of a Delhi-based realty firm, pricing in real estate is unlike consumer goods where reductions are straightforward. Developers must re-evaluate project budgets, input tax credits, and tax liabilities under the new regime. Only after this recalculation will it be clear how much benefit can actually be passed on to buyers.

Many developers are already recalculating costs under the revised GST. For instance, cement now attracts 18% GST instead of 28%, while certain natural stones like granite and marble blocks also come under reduced rates. If these savings lower construction costs significantly, developers could eventually offer more affordable homes.

Expert Opinions: Patience Needed

Real estate experts agree that the GST transition could create a positive environment for buyers, but the impact won’t be immediate.

Anshuman Magazine, Chairman and CEO of CBRE, notes:
“GST reforms will stimulate demand in India, especially before the festive season. Consumer-facing sectors may show faster results, but real estate is more layered. Developers may see reduced input costs, but transferring that benefit to buyers will take time.”

Similarly, Pradeep Aggarwal, Founder of Signature Global (India) Ltd, explains:
“Although GST rates on housing itself haven’t changed, lower taxes on materials like cement will reduce construction expenses. If developers pass on the savings, buyers will eventually gain.”

Festive Season Strategy

With the festive season approaching, developers may adopt flexible payment plans and limited-time offers to attract buyers. However, whether GST reforms alone will bring long-term affordability in the housing market remains uncertain.

Homebuyers Must Manage Expectations

Market analysts advise caution for those planning to buy a house soon. A tax consultant told Moneycontrol:
“Expecting immediate price drops would be unrealistic. The sector needs a few months to stabilize under the new GST system. Buyers should remain patient and manage expectations accordingly.”

The Bottom Line

The new GST system marks a significant reform for India’s taxation landscape, with long-term benefits expected for both businesses and consumers. For homebuyers, however, the wait for cheaper housing may extend over several months as developers reassess costs, adapt strategies, and decide how much benefit to share with buyers.

Until then, industry watchers suggest that buyers focus on evaluating festive offers but avoid rushing purchases based solely on GST expectations.

New GST Rules in Real Estate: Why Cheaper Homes Will Take Months to Become a Reality

September 23, 2025 | Updated 5:54 PM IST

India’s new Goods and Services Tax (GST) framework officially came into effect on September 22, 2025, raising hopes of lower housing costs for millions of aspiring homeowners. While the revised tax system has triggered excitement, experts caution that the real benefit of cheaper homes may not reach buyers for several more months.

Why GST Impact on Housing Is Complicated

The government introduced changes in GST with the objective of simplifying taxation and reducing costs across industries. While sectors like automobiles and FMCG are likely to feel immediate relief, the real estate sector is more complex.

In housing projects, nearly 50% of the cost comes from land, which is not covered under GST. The remaining cost depends on construction materials like cement, steel, tiles, and marble—each taxed at different rates. This fragmented structure means developers need time to assess how the revised tax rates impact overall project costs.

Developers Reworking Project Costs

According to a senior executive of a Delhi-based realty firm, pricing in real estate is unlike consumer goods where reductions are straightforward. Developers must re-evaluate project budgets, input tax credits, and tax liabilities under the new regime. Only after this recalculation will it be clear how much benefit can actually be passed on to buyers.

Many developers are already recalculating costs under the revised GST. For instance, cement now attracts 18% GST instead of 28%, while certain natural stones like granite and marble blocks also come under reduced rates. If these savings lower construction costs significantly, developers could eventually offer more affordable homes.

Expert Opinions: Patience Needed

Real estate experts agree that the GST transition could create a positive environment for buyers, but the impact won’t be immediate.

Anshuman Magazine, Chairman and CEO of CBRE, notes:
“GST reforms will stimulate demand in India, especially before the festive season. Consumer-facing sectors may show faster results, but real estate is more layered. Developers may see reduced input costs, but transferring that benefit to buyers will take time.”

Similarly, Pradeep Aggarwal, Founder of Signature Global (India) Ltd, explains:
“Although GST rates on housing itself haven’t changed, lower taxes on materials like cement will reduce construction expenses. If developers pass on the savings, buyers will eventually gain.”

Festive Season Strategy

With the festive season approaching, developers may adopt flexible payment plans and limited-time offers to attract buyers. However, whether GST reforms alone will bring long-term affordability in the housing market remains uncertain.

Homebuyers Must Manage Expectations

Market analysts advise caution for those planning to buy a house soon. A tax consultant told Moneycontrol:
“Expecting immediate price drops would be unrealistic. The sector needs a few months to stabilize under the new GST system. Buyers should remain patient and manage expectations accordingly.”

The Bottom Line

The new GST system marks a significant reform for India’s taxation landscape, with long-term benefits expected for both businesses and consumers. For homebuyers, however, the wait for cheaper housing may extend over several months as developers reassess costs, adapt strategies, and decide how much benefit to share with buyers.

Until then, industry watchers suggest that buyers focus on evaluating festive offers but avoid rushing purchases based solely on GST expectations.

New GST Rules in Real Estate: Why Cheaper Homes Will Take Months to Become a Reality

September 23, 2025 | Updated 5:54 PM IST

India’s new Goods and Services Tax (GST) framework officially came into effect on September 22, 2025, raising hopes of lower housing costs for millions of aspiring homeowners. While the revised tax system has triggered excitement, experts caution that the real benefit of cheaper homes may not reach buyers for several more months.

Why GST Impact on Housing Is Complicated

The government introduced changes in GST with the objective of simplifying taxation and reducing costs across industries. While sectors like automobiles and FMCG are likely to feel immediate relief, the real estate sector is more complex.

In housing projects, nearly 50% of the cost comes from land, which is not covered under GST. The remaining cost depends on construction materials like cement, steel, tiles, and marble—each taxed at different rates. This fragmented structure means developers need time to assess how the revised tax rates impact overall project costs.

Developers Reworking Project Costs

According to a senior executive of a Delhi-based realty firm, pricing in real estate is unlike consumer goods where reductions are straightforward. Developers must re-evaluate project budgets, input tax credits, and tax liabilities under the new regime. Only after this recalculation will it be clear how much benefit can actually be passed on to buyers.

Many developers are already recalculating costs under the revised GST. For instance, cement now attracts 18% GST instead of 28%, while certain natural stones like granite and marble blocks also come under reduced rates. If these savings lower construction costs significantly, developers could eventually offer more affordable homes.

Expert Opinions: Patience Needed

Real estate experts agree that the GST transition could create a positive environment for buyers, but the impact won’t be immediate.

Anshuman Magazine, Chairman and CEO of CBRE, notes:
“GST reforms will stimulate demand in India, especially before the festive season. Consumer-facing sectors may show faster results, but real estate is more layered. Developers may see reduced input costs, but transferring that benefit to buyers will take time.”

Similarly, Pradeep Aggarwal, Founder of Signature Global (India) Ltd, explains:
“Although GST rates on housing itself haven’t changed, lower taxes on materials like cement will reduce construction expenses. If developers pass on the savings, buyers will eventually gain.”

Festive Season Strategy

With the festive season approaching, developers may adopt flexible payment plans and limited-time offers to attract buyers. However, whether GST reforms alone will bring long-term affordability in the housing market remains uncertain.

Homebuyers Must Manage Expectations

Market analysts advise caution for those planning to buy a house soon. A tax consultant told Moneycontrol:
“Expecting immediate price drops would be unrealistic. The sector needs a few months to stabilize under the new GST system. Buyers should remain patient and manage expectations accordingly.”

The Bottom Line

The new GST system marks a significant reform for India’s taxation landscape, with long-term benefits expected for both businesses and consumers. For homebuyers, however, the wait for cheaper housing may extend over several months as developers reassess costs, adapt strategies, and decide how much benefit to share with buyers.

Until then, industry watchers suggest that buyers focus on evaluating festive offers but avoid rushing purchases based solely on GST expectations.