GST Rate Cuts Spark Positive Festive Outlook in Indian Realty Sector
The Indian government's reduction of GST rates on building materials is expected to enhance consumers' purchasing power and boost housing demand during the festive season. CREDAI emphasizes that the benefit hinges on cement companies reducing their prices. This move, alongside tax incentives, is anticipated to strengthen housing demand.
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The Indian government's recent decision to reduce GST rates on several products is expected to bolster consumer purchasing power and spur demand for residential properties as the festive season approaches, according to the Confederation of Real Estate Developers' Associations of India (CREDAI).
The organization, which represents 13,000 members nationwide, highlighted at its annual CREDAI-NATCON event that the construction costs are likely to decline due to the adjusted GST rates on cement and other building materials. CREDAI insists that these savings will be passed on to consumers, provided manufacturers also cut their prices.
CREDAI President Shekhar Patel noted that this policy change, along with 2025 Budget tax incentives and reduced repo rates from the Reserve Bank of India, could significantly boost housing demand. The association also reiterated the need to adjust the affordable housing price cap and address the substantial tax burden on the real estate sector.
(With inputs from agencies.)
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