The National Real Estate Development Council (NAREDCO) has said that the new GST rate structure has brought relief to real estate and its allied sectors.
“The timing of this decision was equally significant. Announced during the festive season, it will lift consumer sentiment and create fresh demand. It will act as a strong booster for the economy, support homebuyers, and encourage developers,” G Hari Babu, National President of NAREDCO, has said. .
For the real estate and infrastructure sectors, the GST rates on materials like cement and steel had been reduced to 18 per cent from the current rate of 28 per cent.
This was a win-win for consumers, the real estate sector, and the nation’s growth story, he said.
“Lower GST on key materials like cement and steel will directly reduce costs. Projects will become more viable and progress faster. Affordable housing will gain the most, as reduced construction costs can be passed on to homebuyers,” he said in a statement on Thursday.
“The move will make homes more accessible and push forward the government’s ‘Housing for All’ vision. The entire value chain of housing and infrastructure will benefit from this reform,” he said.
We see this as a progressive step that will create long-term momentum for India’s economy,” he said.
By enhancing purchasing power, stimulating consumption, and helping contain inflation, this reform creates a multiplier effect that would propel India’s GDP growth beyond 8 per cent.
“At a time of global uncertainty, such fiscal stimulation underscores the resilience of our domestic economy and strengthens confidence in India’s growth trajectory,” he said.
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Published on September 4, 2025