How the GST Cut Could Transform India’s Real Estate: Construction Cost Set to Drop 3.5–4.5%
India’s real estate sector may soon welcome significant relief. Thanks to the recent GST rationalisation, particularly on key construction materials like cement, marble, granite, and bricks, industry insiders forecast a 3.5–4.5% decline in overall construction costs . But what does that mean for builders, homebuyers, and real estate investors across India? Let’s dive in. Understanding the GST Reforms on Construction Materials 1. Cement GST Slashed from 28% to 18% In one of the most impactful moves, the GST Council cut GST on cement from 28% to 18% , effective September 22, 2025 . Cement alone accounts for 25–30% of raw material costs in construction, making this a game-changer in building economics. Per‐bag cement prices are expected to fall by ₹25–30 per 50 kg bag , as firms pass on tax benefits. 2. GST on Marble, Granite, Sand-Lime Bricks Reduced GST on premium finishing materials— marble, travertine, granite blocks, sand-lime bricks, and stone inlay work —is now 5% instead o...