The central government's decision to reduce the Goods and Services Tax (GST) on cement and steel has been hailed as a game-changing move by leaders from the real estate industry.
According to them, the reduction will ease input costs, improve project viability, and give a major push to the housing and infrastructure sectors, especially affordable housing.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa at CBRE, highlighted the cost impact of the move.
"With cement, steel, and other inputs typically accounting for nearly 40-45 per cent of total construction costs, this reduction will meaningfully lower project expenses. Developers can now pass on part of these savings to homebuyers, improving affordability and stimulating demand across segments," he explained.
He added that the reform has come at the right time as a festive season boost. "This step will also accelerate the government's larger vision of housing growth and infrastructure-led economic development," Magazine said. Niranjan Hiranandani, Chairman of Hiranandani Group and NAREDCO National, termed the GST rationalisation as a "festive bonanza" for Indian consumers and a strategic boost for the economy.
"For the real estate and infrastructure sectors, the reduction of GST on critical construction materials like cement and steel from 28 per cent to 18 per cent is a landmark reform. This will significantly ease input costs, improve project viability, and accelerate infrastructure development across the country," he said. Hiranandani further added that affordable housing stands to gain the most as reduced construction costs can be passed on to homebuyers. -- ANI
